Developer les

$60M suit against Pontiac Medical marijuana license delays cited

DUSTIN WALSH

A group of real estate developers led suit last week against the city of Pontiac over a yearslong delay in issuing a medical marijuana license.

Rubicon Real Estate Holdings, its principal Joseph Brown, and Brown Design Consultants allege in the suit led in Oakland County Circuit Court that the city, and its clerk Garland Doyle, dragged its feet on issuing the permit for nearly four years, causing the developer’s lender to pull its $45 million in loans and led to the loss of several tenants for the proposed development.

e plainti s — alleging violations of equal protection, due process, the First Amendment and Fifth Amendment — are seeking nearly $60 million in damages and legal fees associated with not being able to develop the property. e suit requests a jury trial.

“Because of the defendants’ actions, plainti s have been signicantly damaged, including but not limited to the loss of income, the loss of the increased asset valuation on the subject property from having the leases in place, the increased development costs … the loss of goodwill and reputation and other damages,” the lawsuit reads.

e new suit follows a May 2021 opinion by the same Oakland County Circuit Court judge that ordered the city to approve the permits for the redevelopment, by which time the tenants of the proposed redevelopment decided not to proceed with their lease agreements and the lender bailed on the project.

e suit is the latest blow to the city as it continues to be embroiled in other lawsuits over the city’s long-delayed issuing of medical marijuana licenses.

FOOD & DRINK