WEED Detroit begins accepting applications for recreational marijuana businesses, despite lawsuits B y S teve N eavling
The city of Detroit announced F riday that it will soon begin accepting online applications for recreational marijuana businesses, the first major step in entering the legal market. The city is moving forward despite two lawsuits that allege Detroit’s recreational marijuana ordinance violates state law. Both lawsuits are attempting to stop the city from issuing recreational cannabis licenses. The city will accept online applica-
A medical marijuana dispensary in Detroit. Two lawsuits allege the city’s cannabis ordinance violates state law because it prevents medical facilities from getting a recreational license until 2027. LEE DEVITO
tions from Aug. 1 -3 1 for up to 4 0 dispensaries, 1 0 micro-businesses, and 1 0 consumption lounges. This is the first of multiple phases. In all, the city will award licenses to up to 1 0 0 dispensaries, 3 0 micro businesses, and 3 0 consumption lounges. H alf of the licenses will go to social equity applicants, who must live in a city that was disproportionately impacted by the War on Drugs. The city launched a recreational marijuana site ( H omegrownDetroit. org) for license applications, resources, updates, and tips on getting
MICHIGAN MARIJUANA RETAIL behemoth L ume Cannabis Co. abruptly closed four dispensaries last week, saying the closures are part of a “realignment for growth.” L ume, which has more than 1 ,0 0 0 employees and operates 2 9 dispensaries statewide, closed stores in Bay City, Christmas, Cheboygan, and Southfield. The laid off employees will be given severance pay and an opportunity to apply for positions at other L ume stores, the company said in a statement to Metro T imes. L ater this month, the company is opening new dispensaries in Ann Arbor, G rand R apids, and P ortage. “This realignment is a key part of our strategy to maintain and strengthen our position as Michigan’s leading cannabis retailer,” said Doug H ellyar, president and COO of L ume. “We remain absolutely committed to growing and deepening our retail footprint in communities across Michigan and continuing our efforts to offer high-quality cannabis products for patients and adult-use customers.” The family that owns Belle Tire has a significant stake in
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Marijuana giant closes 4 dispensaries in Michigan, but plans to open 3 more at different locations
licenses. “I want to thank my colleagues for allowing this nex t critical step in the licensing process despite the frivolous lawsuits and ongoing attempts to get Detroit’s ordinance tossed,” P resident P ro Tem J ames Tate, who sponsored the recreational marijuana ordinance, said in a statement. “F or years Detroiters have been fighting for an opportunity to compete in the state’s ever-growing market and the time has finally come to reap the benefits of their hard work.” The Detroit City Council approved
L ume. The realignment comes at a tough time for cannabis businesses. With the market flooded with marijuana, prices have hit all-time lows, forcing some businesses to sell cannabis at a loss. In J anuary 2 0 2 1 , the average cost for an ounce of marijuana was $ 5 1 2 , compared to $ 1 3 1 in May, a 7 4 .4 % decline, according to the Michigan Cannabis R egulatory Agency. There are more than 1 ,0 0 0 dispensaries in Michigan, with new ones opening weekly. The city of Detroit plans to begin approving up to 1 0 0 new recreational dispensaries later this year or early nex t year. But that plan hangs in the balance following two lawsuits that claim the city’s new recreational marijuana ordinance violates state law. – B y S t ev e N eav ling
the latest ordinance on April 5 . “City Council P ro Tem J ames Tate deserves a great deal of credit for his leadership on this issue. Assuring that City of Detroit residents have full and unfettered access to retail marijuana licenses is in everyone’s best interest,” Mayor Mike Duggan said. “Despite all the hurdles P resident P ro Tem Tate and members of the administration had to clear, we finally have in place a fair and equitable process that creates real opportunity for Detroiters.” But a lot is unknown about the future of recreational marijuana in Detroit. Two lawsuits allege the city’s ordinance violates state law because it prevents medical facilities in the city from getting a recreational license until 2 0 2 7 . According to the lawsuits, the ordinance also violates state law by using an unfair scoring system for choosing which companies receive a license, rather than providing a competitive application process. The scoring system, for ex ample, gives preference to companies that hire Detroiters and donate to Detroit nonprofits. The city is late to entering the legal recreational marijuana market, and that could be a major problem for prospective businesses. The market is flooded with marijuana products, growers and dispensaries, causing prices to hit all-time lows and forcing some businesses to sell cannabis at a loss. This is the city’s second attempt at entering the market. In J une 2 0 2 1 , a federal judge deemed the city’s original recreational marijuana ordinance “likely unconstitutional” because it gave preferences to longtime Detroiters. The city scrapped the ordinance and drafted a new one that offers two tracks for licenses so that “equity” and “nonequity” applicants aren’t competing with each other.
