The goodness or gouging in the host community agreements of marijuana companies paying fees to cities and towns has been a statewide topic, including here at Town Hall Tuesday.
The Board of Selectmen approved a host community agreement with proposed recreational marijuana business B’leaf Wellness Centre LLC. The retail dispensary would pay the town quarterly over five years 3 percent of gross sales of marijuana and marijuana products.
That’s on top of a 3 percent annual excise tax established on such companies by town meeting, Town Manager Stuart Beckley told the five-member board. Other cities and towns have extracted additional money from marijuana companies in the form of grants to community groups and pledges of employee time helping at events or with municipal services.
“The town attorney wouldn’t shy away if you asked for additional impacts…other towns have asked for $10,000 for this, $3,000 for that,” Beckley said.
But his view is that whatever programs the town chooses to fund with the money from marijuana companies can come from the 3 percent of gross sales that state law has stipulated for host community agreements instead of seeking more, he said.
“How much of these extra fees do liquor stores pay?” Selectman Alan G. Whitney said. None, Beckley said. Selectman Tracy R. Opalinski said other communities use additional money from host community agreements with marijuana companies to fund programs that could help here such as health education.
“But do we ask liquor stores to contribute to Alcoholics Anonymous?” Whitney said. “I’m not sure you should be comparing these to liquor stores,” Opalinski said. “Why?” Whitney said.
“Because this is cannabis,” Opalinski said. People can be affected with ingestion of alcohol and marijuana, Whitney said. Seeking extra money in a host community agreement could fund programs to help Ware’s substance abuse problem, Opalinski said.
“I agree. I just think the 3 percent” suffices,” Beckley said. Later in the discussion, Selectman Keith J. Kruckas said, “To me, alcohol is just as dangerous and we’re not taxing them.”
Lori and Megan Sinclair, both Ware natives and residents, want to open a retail marijuana business at 60 Main St. under the name B’leaf Wellness Centre. It would be less than 1,000 square feet and have five to eight employees, they said.
The majority of voters in this Hampshire County town followed the statewide lead in approving a ballot question in 2012 to legalize marijuana for medicinal use and another in 2016 to legalize marijuana for recreational use.
Beckley said his sense is that the Massachusetts Cannabis Control Commission and the Legislature eventually will take action as cities and towns hit up marijuana companies for fees that go beyond the law’s 3 percent of annual gross sales.
But in August the commission declined to revisit the host community agreement issue. Some members of the five-member commission said that enforcing additional regulations was outside the commission’s authority and that reviewing every host community agreement in the state would take too much time.
Commissioner Shaleen Title disagreed. The time was now to set a standard on such agreements and ensure cities and towns and marijuana companies follow the law, she said.
It is important to make the marijuana industry in Massachusetts inclusive by blocking a big company from trying to exercise undue influence by offering a seven-figure payment to a city or town on top of the 3 percent of gross sales cap, she said.
In Holyoke, a program has been established in addition to the 3 percent of annual gross sales allowed by the state in host community agreements. The intention of the “Verde (Green) Fund” in Holyoke is to solicit voluntary contributions from marijuana companies of money that would go directly to neighborhood associations without government involvement, City Councilor Nelson R. Roman has said.
The Holyoke City Council also attaches conditions on the special permits it issues to marijuana companies that call for giving Holyokers hiring preference for jobs.
In Montague, the host community agreement also exceeds the 3 percent gross sales contribution for proposed recreational marijuana business 253 Organic LLC. The agreement there includes a goal of making $15,000 in donations to community groups and donations of employee time to events such as those dealing with substance abuse, senior citizens and military veterans.
The Ware Board of Selectmen approved the host community agreement with B’leaf Wellness Centre 4-1. “Anybody who’s been to these meetings knows I’m not in favor of marijuana,” said Chairman John E. Carroll, who voted no.
Voting yes were board members Michael Fountain, Whitney, Opalinski and Kruckas. The B’leaf Wellness Centre needs final approval from the town and a license from the Cannabis Control Commission before it could open.
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