Imlay City Faces Legal Challenge Over Medical Cannabis Ballot Initiative

August 26th, 2024 Legislation & Policy Updates
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Two years ago, the voters of Imlay City approved a ballot measure allowing the establishment of medical cannabis facilities within city limits. However, despite this decision, no such facilities have opened since. Now, the same group that supported the November 2022 proposal is pushing for a charter amendment on the city’s November 2024 ballot to further "expand access" to medical cannabis in the city.

During a recent Imlay City Commission meeting, City Clerk Dawn Sawicki-Franz reported that the group, now operating under the name "Imlay City Yes 2024," submitted a petition on July 30th with signatures supporting the amendment. This was the final date for submitting ballot proposals for the city's upcoming November 5th general election. Upon reviewing the petition, Sawicki-Franz determined that the petition lacked the required number of valid signatures. Some signatures were disqualified due to being from residents of neighboring townships or due to illegibility. In total, 130 valid signatures were collected, but 137 were needed for the proposal to qualify for the ballot.

Following this, Sawicki-Franz consulted with City Attorney Robert Seibert, who confirmed that the petition did not meet the necessary criteria to move forward. In response, the group filed a motion in Lapeer County Circuit Court to challenge the city’s decision and requested an additional ten days to gather the required signatures. The hearing is scheduled for Monday at 9 a.m. in front of Judge Mike Nolan.

The proposed charter amendment, if approved, would end the city's prohibition of cannabis establishments and allow for the operation of up to two medical cannabis facilities. However, City Manager Craig Horton raised concerns about the initiative, stating that the proposal’s language is misleading. Horton pointed out that the city does not currently prohibit cannabis establishments; in fact, licenses were granted to two businesses following the 2022 measure, but these businesses chose not to open. He also criticized the proposed scoring system for license applications, which would heavily favor existing license holders, potentially blocking new applicants from securing a license.

Furthermore, city officials have expressed concerns that the amendment could override local zoning ordinances. Currently, medical cannabis businesses in Imlay City are restricted to operating in B-2 commercial districts. The proposed amendment could allow businesses to relocate their licenses and remove restrictions on operating near highway exits.

In the 2022 election, Imlay City voters narrowly passed the charter amendment to permit medical cannabis facilities by a vote of 644 to 599. This required the city to issue eight licenses across various categories, including provisioning centers, growers, and safety compliance facilities. Despite receiving six applications for provisioning centers and issuing two licenses, neither business has yet to open.

The city’s medical cannabis department, established as a result of the 2022 amendment, has been operating at a loss. As an unfunded mandate under the city charter, the department relies on transfers from the general budget to maintain operations. The $100 fee for cannabis license applications has proven insufficient to cover the department's costs, according to Sawicki-Franz. She also noted that the deadline for submitting ballot proposal language to the county for the November election passed on August 13th.

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