Ever since Michigan greenlit the use of marijuana in 2018, the state has witnessed a proliferation of dispensaries catering to both adult-recreational and medicinal consumers. Mt. Pleasant, in particular, is emerging as a hotspot for new dispensaries. This trend was further accelerated when the city decided to lift the restrictions on the number of dispensaries allowed within its limits.
Previously, the city had set a range, limiting the number to between 3-5 dispensaries. This cap didn't sit well with several aspiring business owners, leading to four lawsuits filed in 2020. Following deliberations, the city chose to remove the cap altogether, paving the way for more businesses to set up shop.
Manuela Powidayko, Mt. Pleasant's Director of Planning and Community Development, observed, "Marijuana license applications have been a frequent sight since I took up my role. The casino, university, and the city's tourism pull might be driving the perceived demand in the market."
To open a dispensary in Mt. Pleasant, businesses must navigate a detailed process. This includes obtaining the necessary licenses and qualifications from both the state and city, presenting and refining site plans, and participating in public hearings. All of this ensures compliance with the city's codes and guidelines.
Among the new dispensaries slated to launch in Mt. Pleasant are The Woods, located at 502 N. Mission Street, and High Society Dispensary, taking over the former Family Video spot at 317 N. Mission Street, which shut its doors in 2021.
"The High Society Dispensary, now occupying the old Family Video premises, is on the verge of completion. We're expecting a call for final inspections soon, post which they'll seek the State of Michigan's approval for opening," stated Mt. Pleasant Building Official Brian Kench. Similarly, The Woods has secured their final nod and are in talks with the state for their closing approval.
As Mt. Pleasant continues to evolve, we can anticipate the arrival of both independent and larger chain dispensaries in the coming years.
Lume Cannabis Co., a prominent name in Michigan's burgeoning adult-use cannabis market, has unveiled its latest retail location, nestling in the serene locale of Menominee, expanding access to premium, safe, and meticulously-cultivated cannabis products to patrons in the region.
Strategically situated at 2812 10th Street, this new hub for cannabis enthusiasts will focus exclusively on curbside purchases, accommodating both pre-orders and on-spot curbside orders, ensuring a convenient and swift purchase experience for all customers. Operating from 9 a.m. to 9 p.m., seven days a week, the store pledges to cater to the diverse needs of Michigan's adult-use cannabis clientele.
Marking its seventh establishment in the Upper Peninsula and the sixth new addition to Lume's retail portfolio this year, the Menominee outlet joins the chain following hot on the heels of launches in several Michigan locales including Traverse City, Birch Run, Holly, Southfield, and Berkley.
A statement from Doug Hellar, President and COO of Lume, reflected the company's enthusiasm and commitment: "This year signifies a momentous period of growth for Lume, and our ongoing expansion in the Upper Peninsula underscores our dedication to ensuring safe and top-tier cannabis products are accessible to our valued customers in and around the Menominee area."
To commemorate its grand opening on Saturday, October 7th, starting at 9 a.m., Lume will host a celebration, offering a suite of promotions and discounts designed to delight its early patrons. This includes complimentary 1/8th offerings for the initial 50 customers, free pre-rolls for the subsequent 50, and gift cards to the much-loved local, The Bagel Shoppe and Café, for the first 100 purchasers, under the 'Lume Receipts = Free Eats' initiative.
Rooted in a firm commitment to quality, Lume assures that all of its cannabis flowers are nurtured and harvested within their state-of-the-art facility, nestled in Evart, Michigan. This facility boasts a team of seasoned, expert growers, ensuring that all Lume products consistently deliver in terms of aroma, appearance, and effects. Furthermore, staunchly opposed to employing harmful chemicals, and adhering to the most stringent industry testing, Lume ensures that every product aligns with the highest benchmarks of quality and safety, crafting a trustworthy and exceptional cannabis experience for every customer.
In the quaint town of Morenci, Michigan, population 2,300, you'll find a scarcity of grocery stores but an abundance of marijuana dispensaries. Positioned strategically along the Ohio border, this locale and others like it — Adrian and Monroe, to name a couple — have become hotspots for cannabis tourism, especially for Ohio residents where recreational marijuana use remains illegal.
Morenci's reliance on the thriving cannabis industry contrasts its lack of basic amenities. Local residents endure at least a 20-minute drive to stock up on groceries, yet the town hosts five distinctive marijuana stores, primarily patronized by Ohioans, many of whom may be navigating Michigan's marijuana market for the first time. If you're one of them, check out our Michigan Marijuana Buying Guide for Tourists for comprehensive insights. The prominence of the marijuana industry starkly contrasts with the town's scarcity of fundamental amenities, underlining its vital economic role in an area lacking basic resources like food markets.
However, the tides might be shifting. Morenci, along with other Michigan border towns, is cautiously observing the November 7th vote in Ohio, which could legalize recreational marijuana and thus, potentially curtail the inflow of Ohio cannabis tourists to Michigan. Current illegal status notwithstanding, numerous Ohioans make the trek to Michigan, where they can legally purchase and enjoy marijuana products.
The proposition presented to Ohio voters seeks to legalize the purchase of marijuana products for adults aged 21 and above in state-sanctioned stores. Furthermore, it would allow residents to cultivate marijuana at home, representing a potential significant shift in regional cannabis commerce.
A poll conducted by Yes2, an advocacy group supporting the initiative, reported that 59% of Ohioans back the proposal, while 36% intend to vote against it, highlighting the potential for this shift to become a reality.
In Morenci, the economic benefit derived from cannabis sales is conspicuous. Brad Moran, Morenci's city superintendent, revealed that the most recent annual sales tax payment to the town from marijuana sales reached $240,000. This sum is augmented by $75,000 from licensing fees for medical and recreational marijuana businesses. The exact figure for property taxes from the five businesses is undisclosed, but it adds a supplementary boost to the town's coffers.
The looming Ohio vote, Moran conveys, is being "watched anxiously."
Bob Eschrich, co-owner of the Jade Collection, a marijuana store prominently located on Morenci's Main Street, estimates "Probably 75% to 80% are Ohio people" among his clientele. The ramifications of the vote could thus be stark, potentially diminishing a sizable chunk of the customer base for businesses like his.
Although many of Michigan's marijuana locations might remain unscathed by the Ohio vote's outcome, towns like Morenci that rely heavily on cross-border sales might experience a downturn. Eschrich anticipates that the survival of Morenci's marijuana businesses is not assured, especially in the intermediate term.
Despite potential challenges, Eschrich remains resilient, asserting that a prospective one-year gap between the vote and the actual opening of recreational stores in Ohio (if the state question passes) provides a crucial window for Michigan stores. Additionally, an excess supply has reduced prices in Michigan's cannabis stores, providing a tentative price advantage until Ohio's market stabilizes.
Eschrich envisions a "three- or five-year window" of transition, during which customer loyalty, particularly among older adults seeking pain relief, will be pivotal. "My way of survival is to be that one people are willing to drive to," he concludes.
In essence, Michigan's border towns, having burgeoned amidst a burgeoning marijuana market, now teeter on the brink of a new era, where adaptation and customer loyalty will determine the sustainability of their green economy amidst potential policy shifts across state lines.
In recent years, Michigan has become a hotbed for both cannabis business and the banking challenges it presents. While cannabis ventures are flourishing in the region, their banking needs remain complex and somewhat contentious. This is a sector that, despite its growing economic significance, is still shrouded in layers of regulatory caution and skepticism. At the intersection of profit and prudence, banks have been forced to tread carefully, often implementing expensive and compliance-heavy programs to navigate the intricacies of cannabis finance.
But for those institutions brave enough to delve into the fray, the rewards have often been worth the risks. With many banks still reluctant to embrace the sector due to perceived compliance burdens and potential risks, pioneers in the field have capitalized on a largely untapped market, gaining access to a plethora of cheap deposits. However, this landscape is rapidly evolving. With more players stepping into the arena, the once straightforward benefits of banking the cannabis industry are becoming more nuanced. The game is no longer simply about risk and reward but about differentiation, innovation, and most crucially, staying ahead of the competition.
In this article, we'll delve into the various facets of the competitive cannabis banking environment in Michigan, from the strategies employed by forward-thinking institutions to the voices of caution, and the innovative solutions emerging in response to growing competition.
After facing a series of setbacks, from robberies to bankruptcy, the iconic alternative lifestyle store, Purple East, is optimistic about finding an investor to ensure its longevity as it approaches its landmark 50th anniversary.
Drew Phillippy, the current president and co-owner, points to the extensive road construction on Plainfield Avenue during the summer as a significant setback for the Grand Rapids-based business, diverting potential customers. Purple East, renowned for its vast array of smoking accessories tailored for both tobacco and cannabis enthusiasts, has endured its fair share of challenges over the past few years.
Taking the reins as general manager in 2019 and later ascending to the presidency in 2020, Phillippy's mission was to steer Purple East back to prosperity. Amidst an overextension of resources, he filed for Chapter 11 bankruptcy to consolidate a $270,000 debt. By 2020, Phillippy made the strategic decision to merge its four branches into a single location at 2221 Plainfield Ave. NE, Suite 105, gradually reviving the business, even as the COVID-19 pandemic loomed.
In 2022, Phillippy and Jerell Smith took the leap to become the new owners. "I genuinely believed we'd overcome the most difficult challenges," Phillippy reflected, noting the business was profitable for a year and a half post-bankruptcy.
However, Purple East's resilience was tested with three separate robberies, inflationary pressures, and the challenges presented by road construction. Moreover, the legalization of recreational-use marijuana in Michigan added to the store's woes as multiple cannabis retailers began establishing their presence, making the competition fiercer.
Ben Wrigley, an expert in marijuana business law at Wrigley Hoffman P.C., observes that traditional paraphernalia shops like Purple East face challenges due to the proliferation of larger cannabis retailers who also stock similar products. Wrigley emphasizes the importance of these retailers staying attuned to market trends, especially with edibles predicted to dominate the future.
For Phillippy, the immediate goal is to offset the remaining $35,000 debt and find a visionary buyer who sees the potential in Purple East. As the 50th anniversary looms, Phillippy aspires for the business to celebrate it with the grandeur it deserves, instead of amidst financial challenges.
With a dash of innovation, additional capital, and renewed enthusiasm, Phillippy believes that Purple East can thrive once more. "This is a 50-year legacy with immense potential," he states confidently. "In the right hands and with the right strategy, Purple East can reclaim its glory in this evolving market."
In 2018, Michigan citizens cast a decisive vote, allowing legal marijuana use for adults. Since then, there's been growing anticipation about how the cannabis industry could blend seamlessly with Michigan's rural economic fabric.
The Northern Michigan towns of Gaylord, Kalkaska, and Mackinaw City have already tapped into this potential, embracing cannabis as an economic driver.
Adding to this list is the village of Wolverine in Cheboygan County. The latest entrant in the local cannabis market is The Corner Farmacy, strategically located on South Straits Highway beside the Wolverine Cabinet Co. This venture is the brainchild of Scott Mann, who secured the location with the help of Brian O'Connor of Wolverine Cabinet.
In a conversation about his venture, Mann stated, "Brian and I have forged a strong partnership. I believe our establishment can contribute significantly to Wolverine, both in terms of job creation and tax inflow."
The placement of The Corner Farmacy, just off I-75, holds significant potential according to Mann. "Given our closeness to I-75, we're in a prime position to attract customers, especially those heading downstate. With our current competitive offers, I believe many will stop by," he expressed.
Highlighting the shop's strategic location, Mann added, "Wolverine is nestled about 20 miles from Gaylord and in close proximity to Harbor Springs, Petoskey, and the Mackinac Bridge. Given our position in this recreational hub, there's a substantial audience to cater to, from daily commuters to those enjoying local recreational activities."
Recounting the journey of The Corner Farmacy, Mann revealed that the idea was initially proposed two years ago. Although he had also considered a consumption lounge, Mann prioritized the retail store. After collaborative discussions with village officials and addressing concerns of a few residents, Wolverine granted the project a thumbs-up.
"We envisioned a venture that would integrate seamlessly into the community, offering employment, and enhancing the local tax base," Mann commented.
Customers can expect a diverse product range at The Corner Farmacy, from widely recognized brands to locally-sourced 'mom-and-pop' goods. Presently, the store welcomes patrons from 9 a.m. to 9 p.m. throughout the week, with considerations to expand the hours based on demand.
On a personal note, Mann admitted that he was unfamiliar with marijuana's benefits until a tragic car accident in 2015. Battling immense pain post the accident, Mann turned to marijuana as a therapeutic aid, averting the need for opioids. "A mere half joint before my physical therapy sessions made a world of difference. It was a game-changer for me," he concluded.
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