Adult-Use Cannabis Report

Adult-Use Cannabis Report updated as of 4/10/2022

In 2020, there were 7 villages within Michigan that allowed for adult-use provisioning centers.  That number has increased to 15 in 2021 and continues to grow.  The Village of Pentwater and Shelby Township Oceana County has put the issue of allowing a provisioning center on the ballot for May 2022. 

FY20 MRE Web Report 02-22-21.xlsx (michigan.gov)                                           *as of 9/2021

Municipality Type           Number of Municipalities           Number of Licenses        Total Amount Paid

City                                                 38                                                     115                         $3,220,151.80

Village                                              7                                                      11                                308,014.52

Township                                         21                                                        52                          1,456,068.64

County                                             38                                                        178                         4,984,234.96

                                                                                                   Total                                   $9,968,469.92     

FY21 MRE Web Report of Distribution 03-18-22.xlsx (michigan.gov)                *as of 3/2022

Municipality Type           Number of Municipalities           Number of Licenses        Total Amount Paid

City                                              62                                                           262                         $14,790,801.28

Village                                         15                                                          31                                1,750,056.64

Township                                      33                                                           81                              4,572,728.64

County                                       53                                                           374                            21,113,586.56

                                                                                                    Total                                   $  42,227,173.12

TREASURY – Treasury: First Adult-Use Marijuana Payments Distributed to Michigan Municipalities, Counties

The Michigan Department of Treasury is distributing nearly $10 million to more than 100 municipalities and counties as a part of the Michigan Regulation and Taxation of Marijuana Act.

This week, 38 cities, seven villages, 21 townships, and 38 counties began receiving payments from the Marihuana Regulation Fund for every licensed retail store and micro business within its jurisdiction. For the state’s 2020 fiscal year, this means each eligible municipality and county will receive around $28,000 for every licensed retail store or microbusiness.

“The revenue generated from marijuana taxes and fees is important to our local governments,” State Treasurer Rachael Eubanks said. “In this extraordinary time, our staff is working to get those payments to impacted municipalities and counties. Every dollar helps right now.”

For the state of Michigan’s 2020 fiscal year, more than $31 million was collected from the 10% adult-use marijuana excise tax. Combined with fees, there was a total of $45.7 million available for distribution from the fund.

State law outlines how much is distributed from the Marihuana Regulation Fund.

Aside from the nearly $10 million in disbursements to municipalities and counties, around $11.6 million will be sent to the School Aid Fund for K-12 education and another $11.6 million to the Michigan Transportation Fund, upon appropriation. The remaining $12.5 million amount will be used toward start-up and administrative costs.

In total, more than $341 million in adult-use marijuana sales was reported for the fiscal year 2020.

“The team at the Marijuana Regulatory Agency did a tremendous job getting the adult-use licensing program established and operating efficiently,” said MRA Executive Director Andrew Brisbo. “Infusing over $28,000 per retailer and micro-business into local government budgets across the state is very impactful and shows how strong and successful the industry is becoming.”

TREASURY – Treasury: Adult-Use Marijuana Payments to be Distributed to Michigan Municipalities, Counties   3/24/2022

The Michigan Department of Treasury today announced that more than $42.2 million will be distributed among 163 municipalities and counties as a part of the Michigan Regulation and Taxation of Marijuana Act.

Next week, 62 cities, 15 villages, 33 townships and 53 counties will be receiving payments from the Marihuana Regulation Fund. For the state of Michigan’s 2021 fiscal year, this means each eligible municipality and county will receive more than $56,400 for every licensed retail store and micro-business located within its jurisdiction.

“The Michigan Department of Treasury will distribute these dollars as soon as practical to eligible local units of government,” State Treasurer Rachael Eubanks said. “The doubling of this year’s payment amounts will have a larger impact on local government budgets.”

Revenue was collected from 374 licensees among the state’s cities, villages, and townships during the 2021 fiscal year. Some of these municipalities host more than one licensed retail store and microbusiness.

For the 2021 fiscal year, more than $111 million was collected from the 10% adult-use marijuana excise tax. In total, there was $172 million available for distribution from the fund.

State law outlines how much is distributed from the Marihuana Regulation Fund.

Aside from the more than $42.2 million in disbursements to municipalities and counties, $49.3 million was sent to the School Aid Fund for K-12 education and another $49.3 million to the Michigan Transportation Fund.

In total, more than $1.1 billion in adult-use marijuana sales was reported for the fiscal year 2021.

“It’s rewarding to see that the agency’s balanced regulatory approach is effectively protecting consumers while still allowing Michigan businesses to grow and thrive,” said MRA Executive Director Andrew Brisbo. “The funding provided directly to local governments – and the thousands of jobs created across the state – show that Michigan is leading the way in the cannabis industry.”

For more information about adult-use marijuana tax distributions – including a breakdown of how much municipalities and counties received – go to Michigan.gov/RevenueSharing. To learn more about Michigan’s adult-use marijuana industry, go to Michigan.gov/MRA.

TREASURY – Recreational Marijuana (michigan.gov)

Marijuana funds collected under the Michigan Regulation and Taxation of Marihuana Act (Initiated Law 1 of 2018) are distributed, upon appropriation, as follows:

15% to municipalities in which a marijuana retail store or a marijuana microbusiness is located, allocated in proportion to the number of marijuana retail stores and marijuana microbusinesses within the municipality (this is the $56,400 per business to each village, township, city).

15% to counties in which a marijuana retail store or a marijuana microbusiness is located, allocated in proportion to the number of marijuana retail stores and marijuana microbusinesses within the county (this is the $56,400 per business to each village, township, city).

35% to the School Aid Fund to be used for K-12 education (this is separate from the $56,400 per business to each village, township, city, and county).

35% to the Michigan Transportation Fund to be used for the repair and maintenance of roads and bridges (this is separate from the $56,400 per business to each village, township, city, and county).

Villages I spoke to that have adult-use provision centers

Addison:  Population 605 per the 2010 census.   https://addisonmi.us/

I spoke with Julie who was the Village Clerk but is filling in while the new person gets acclimated.  She had been for several years and is well acquainted with the Provision Center. 

Addison does not have its own Police Department.  Crime has not increased since the provisioning center came to the village.  The village does not smell of cannabis.  There are no drug addicts and people experiencing homeless on the streets. 

Each type of business must pay a $5000 non-refundable application fee to the village.  So, if there is adult use and medical use in the same provision center, that business would have to pay $10,000 for the application fee.  They must get State of Michigan approval before they can be approved through the village.  Every year, they must pay $5000 per license to be able to continue operations within the village.  Once a year the State of Michigan distributes money for each license that they have within the village.  Last year, they received $56002.64.  They have also added processor and grow licenses.  They can determine what the funds received are used for.  One of the main things they use it for is their water as the grows use a lot of water.   That does not include the donations and community service that each establishment provides on its own. 

She directed me to go to their website to find all their information regarding marihuana:

https://addisonmi.us/code-compliance                  Zoning Ordinance for Medical Marihuana

Application for Medical Marihuana                          Medical Marihuana Ordnance

Building Permit                                                                 Recreational Marihuana

Quincy: Population 1,619 as of 2018.  http://www.quincy-mi.org/

I spoke with Brittany Butler, Village Manager on the phone.   They had 1 in 2020 but currently have 2 open provision centers in 2021. They will allow 4 total.  They also allow for 15 grows. They have not had an increase in the crime rate since the first one opened.  The village does not smell of cannabis.  The fear that it will bring drug addicts and homelessness has not been realized, in fact, it has been their experience that most patrons are upstanding citizens that live within their community.  For more information, contact the Village Office at 517-639-9065 or email bbutler@quincy-mi.org

The provision centers have rehabbed old buildings for their use, spending thousands of dollars to bring everything up to code and follow State guidelines.  They are not allowed in the downtown area but in the surrounding areas.  There is an eligibility map (which is included in the packet I’ve provided). 

$5000.00 fee per year per type of business.  For example: a provisioning center that has adult-use and medical products would pay $10,000 each year.  Licenses are non-transferable, if ownership changes, they must pay for a new license. They also receive funds from the State of Michigan, which is $28,001.32 per license, which the county also receives.  There is no stipulation as to how they use the monies given to them by the State.  The village can determine where the monies go, they use a general fund and disperse from there according to need, i.e., Police salaries, road repair, improvements, and so on.

They have a 57-point system that determines eligibility for any establishment that wants to come into their community.  They do not have a limit to how many can open in the village; however, they would suggest no more than 4 to other villages to reduce oversaturation.  The businesses donate to the community, which is part of the point system to determine eligibility to obtain a license. This past year, monies were donated to their K-9 unit and different events.

http://www.quincy-mi.org/2281/Adult-Use-Marijuana                  

License-Map (quincy-mi.org)                      AUE Licensing Ordinance             

AUE Application Policy                   AUE Facilities Permit Application

Provision Centers that I visited in person

New Standard – Park Place – Muskegon  https://www.anewstandard.com/locations/park-place/

Brick building with black and white signage.  Curbside pickup, open parking lot.  No smell outside.  The staff was friendly and knowledgeable.  The customer base was the average age of 50 – 60-year-old females.  Repeat customers for ongoing pain management.  27 employees year-round, more in peak months: inventory, product specialist, sales, cashier.  $13 – $18 per hour plus tips.  The biggest setback was oversaturation.  They were the first location opened in West Michigan and started out doing $20,000 to $50,000 in business daily.  Cannot be within 100 feet of parks, schools, and churches and cannot have anything to draw kids’ eyes (signage, colors, banners, flags, neon signs, etc).

Timber – Muskegon https://timbercannabisco.com/muskegon/

Brown and black exterior.  Mirrored windows.  Curbside pickup, open parking lot.  No smell outside.  The staff was very friendly and knowledgeable.  16% recreational use tax.   $10,000 grant every quarter to non-profit in Muskegon (2 if they have a good quarter) for a total of $40,000 plus each year donated back to the community.  They run a ‘bundle special’ each month that donates 10% of sales to local non-profits.  8 people on staff at one time.  7 days a week.

Michigrown https://www.michigrown.com  is the grow facility located behind Timber in Muskegon.  It employs 40 people full-time year-round.  There was no smell from this facility.  No windows.  A white building with only the name “Michigrown” in black letters.

Red Bud Roots – Muskegon https://www.redbudroots.com/muskegon

Dark blue, wood, and black exterior.  Curbside pickup. Parking lot in back.  No smell outside.  The staff was friendly and knowledgeable.  One employee had quit a 14-year career as manager of Starbucks to come work here.  12 employees on staff at a time.  $14-$15 an hour plus tips to start, then pay increases after 30 days and grows from there.  Thousands in revenue daily.   The customer base is every demographic, local and out of town.  The main issues are aches and pains, anxiety, and sleep.  Independently owned: grow and process own products.  The grow facility in Buchanan, MI employs 100 people year-round.  More in peak processing times.

Great Lakes Natural Remedies – Manistee https://greatlakesnatural.com/manistee/

White building, dark green roof.  Mirrored windows. Curbside pickup and open parking lot.  No outside smell.  The staff was super friendly and knowledgeable.  Each location is made to fit in with its community aesthetic.  Example:  Manistee is nautical and Benzonia is hunting-oriented.  One location is across from a church so that location does not open on Sundays to respect the church.  $50,000 is donated to each community they are located in. 

Authentic 231 – Manistee https://authentic231.com/home-1

Dark gray building with a wooden sign. Curbside pickup and open parking lot.  Also, offer delivery to Ludington or Scottville.  Could smell it outside and in the lobby.  The staff was very friendly and knowledgeable.  Made up of local farmers from Manistee and farmers from California.  The staff was local and from other areas.  Give back to the community by service and donations.  6 people on staff at any time.  More during peak seasons. 

Dunegrass – Manistee https://dunegrass.co/

Brick building with black roof mirrored windows.  Curbside pickup, open parking lot, delivery to Ludington.  The sign was light brown with black letters and actual dune grass.  No smell outside.  The staff was friendly and knowledgeable, with 7 people plus on staff at any time, more in peak seasons.  Delivery is mostly to the elderly who can’t drive or get out.  40-minute delivery radius.  Employees live locally.   Donated free rides to HOPS & PROPS craft beer festival in Manistee.  Organize and volunteer beach cleanups.  Also, give back monetarily, but don’t do it for accolades, only because they care about the community they live in and serve.  One employee said he used cannabis to get off opiates that were prescribed to him as a result of a back injury. 

Fresh Water – Baldwin https://www.freshwatercannabisco.com/

Gray pole building with white accents.  The sign was white with black letters and a blue circle.  No smell outside.  The staff was friendly and knowledgeable.  Going to be starting construction on a 2 million dollar grow facility on the property behind the building.  2 employees upfront but more in the back.  Enjoy helping people.  Have the Freshwater Cannabis Foundation is dedicated to social justice, our environment, clean water, and sustainable cannabis. 

The Green Door – Baldwin  https://www.thegreendoorcannabis.com/

Green pole building.  Only smelled product once opened door to the entrance. Curbside pickup and open parking lot.  Their philosophy is “not to have a modern, boutique-y, and upscale feel.” They are “the quintessential ‘mom and pop’ business.  Our goal is to make every customer who walks through our door feel like family by providing a welcoming and relaxed atmosphere. We want to know about your day and what we can do to make it better.  No fancy clothes or intimidating vibes required.”  The staff was super friendly and knowledgeable with 6 people or more on staff at all times.  The owner started in the cannabis industry to find treatment for his daughter’s epilepsy.  Partner with Pure Michigan Growers.  They employ local people and donate back to their communities.

Pure Options – North Muskegon https://pureoptions.com/locations/michigan/muskegon/

Black exterior, big windows covered with something so only can see shadows.  Black sign with white accents.  6 employees between lobby and store, more in back.  No smell outside.  Open parking lot, curbside pickup.  One employee is a veteran who said he had worked at a factory in Muskegon at night and felt unsafe, however, even though he may work until after dark, he has never felt unsafe working at the provisioning center.  He uses cannabis to help with PTSD.  They donate back to the community they are in; currently working on a Back the Blue event.

Cloud Cannabis – North Muskegon https://cloudcannabis.com/dispensaries/mi/muskegon/

**referred to go here by a Bass Lake resident I met at coffee chats at Good Stuffs.  She said she was in her 70s and went with a friend to educate herself.  She was blown away and it changed her view as to what a provisioning center is like.  She walked in and said “Wow!”  Was very impressed and recommended I take people there who have never been to a provisioning center.

White building (not stand-alone, other businesses in the same strip) with large windows into the lobby but cannot see the product from outside.  Black awning white letters and cloud outline. No smell outside.  Open parking lot, curbside pickup.  6 employees upfront, more in back. The staff was super friendly and knowledgeable.  This was the only place I saw an armed guard in the lobby.  They hire locally and give back to the communities that they are in.  They have 4 open locations and 5 that are coming soon.

Fears that have been raised by community members:

  • Marijuana will corrupt our children: One must be 21 years old with a valid driver’s license to enter a marijuana establishment, one cannot consume on the property, and there is a limit to the amount of marijuana that can be purchased each day which is regulated by a state-wide system. Yet children are allowed in bars and there is no system to ensure that people are not overserved.  Tobacco is consumed in public and children are subject to secondhand smoke, which is deadly.  There are businesses in Oceana County that sell candy cigarettes and Jelly Belly jelly beans in mini bottles that look like shots sold in liquor stores.  
  • Marijuana will lead to drug addiction, and homelessness, make our village smell bad, and be dirty:  Addiction has many forms, including but not limited to caffeine, sugar, tobacco, alcohol, food, and prescription medication.  Any of these things can be considered gateway drugs when misused and abused, yet most are found in our refrigerators and medicine cabinets.  The prices of the marijuana establishments are far higher than what is available on the street, therefore the clientele that frequent these establishments are more financially stable.  There are already people experiencing homelessness in Oceana County, which I saw firsthand when I oversaw the Emergency Shelter Program at Oceana’s Home Partnership.  Tobacco use in public leaves cigarette butts everywhere, whereas there is no visual evidence of marijuana being used in public.  The smell from either tobacco or marijuana can be unpleasant, however, marijuana is non-lethal, whereas tobacco is deadly to the user and those around them.
  • Crime rates will increase: The Village of Addison, which is smaller than Pentwater, has a marijuana establishment and is more in the process of opening, does not even have a police force, and has not seen an increase in its crime rate.  The Village of Quincy received donations from the establishments for their K-9 unit in 2021 and has not seen an increase in crime. 
  • Benefits of having dispensaries in our community.  Those of us in support of having marijuana establishments currently must drive to Whitehall, Baldwin, Manistee, or Muskegon.  We would rather invest in our community, see local residents employed, and reap the benefits of the taxes and fees dispersed by the State of Michigan.  We are upstanding citizens, voters, taxpayers, business owners, employees, committee members, volunteers, churchgoers, Veterans, cancer survivors, patrons of the arts, mothers, fathers, grandparents, neighbors, friends, and family. We already live, work, and play within Oceana County.  

Benefits of having a provisioning center instead of buying off the streets:

  • the product must be certified in the provisioning center, no regulation on the street
  • cap on consumption – 2.5 ounces of product daily; no limit on the street
  • age limit: must be 21 with a valid id to be on-premises; not allowed to enter with an expired license
  • no consumption is allowed on the property
  • regulated by Lara and MRA, no regulation on the street
  • revenue to local municipalities includes but is not limited to tax revenue, non-refundable application fees, and annual license fees
  • safer way to purchase…not in churches, schools, alleys, etc.

Thank you for your time and attention to this matter.  If you have any questions, feel free to contact me by phone: 231-742-6770 or email: potwatermi@gmail.com

Respectfully,

Amanda Lewandowski

PotWater LLC.

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