TURNERS FALLS — A host agreement for prospective marijuana retailer, cultivator, and product manufacturer 253 Organic LLC, has been finalized and approved unanimously by the Selectboard.
Selectboard Member Rich Kuklewicz also read a letter of support on behalf of the Selectboard to the Cannabis Control Commission (CCC), expressing support for the business and recognizing that the company intends to have a positive working relationship with the town. Now, the company must wait for their license to be approved by the CCC.
The host agreement became effective April 2, but financial terms of the agreement won’t be effective until the business is open. It details community involvement by 253 Organic, as well as security, financial obligations, local hiring preferences and more.
The business, 253 Organic LLC, hopes to open a marijuana cultivation, production and retail facility at 253 Millers Falls Road in the old Hallmark Imaging building. Business partners have met multiple times with Selectboard members and the community to discuss plans for the company.
“It’s really the same document,” said Town Planner Walter Ramsey, referencing a draft host agreement released by the Selectboard after their March 19 meeting. The final agreement can be found by clicking on the April 2 Selectboard meeting on Montague’s city calendar.
Once 253 Organic opens, it has agreed to help the community in a few different ways.
Firstly, it has agreed to make an annual Community Impact Payment totaling 3 percent of gross retail sales, which is estimated to be approximately $7 million. This would total $210,000 in revenue for the town.
The business also has agreed to make an annual Wholesale Payment to the town. Wholesale is defined as marijuana that is produced by the cultivation and manufacturing operations at the facility, but not directly sold to consumers onsite. However, 253 Organic’s business model is based primarily on onsite sales; wholesale is expected to be a smaller part of their business. There is not yet an estimate for wholesale sales but the Wholesale Payments to the town are as follows:
In wholesale sales $0-399,999.99, the payment to the Town would be 1 percent of those sales.
In wholesale sales $400,000.00-800,000.00, the payment to the Town would be 2 percent.
In wholesale sales equal to or greater than $800,000.01, the payment to the Town would be 3 percent.
These annual payments — Community Impact and Wholesale — will expire five years from the date the facility opens, but the town and 253 Organic will negotiate new payments every five years. Payments in the future will be no less than those payments agreed upon in the host agreement.
Also, 253 Organic has agreed to a target goal of $15,000 in community contributions per year. This allows them to invest in community needs and respond to town-wide issues as they come up.
In addition to monetary support, members of 253 Organic have agreed to provide 150 man hours per year to participate in community meetings and community service. Specific community service activities have not yet been specified, but could include education, community clean-up, veterans assistance and senior assistance.
The business has also agreed to coordinate with the Turners Falls Fire District and police to ensure security.
A crossing area with pedestrian-controlled lights will be implemented across Millers Falls Road to the facility. Ramsey emphasized that the lights wouldn’t be lit all the time; they would be available on push-button demand to ensure a safe passage across the street. This crossing would also benefit those going to or from the Franklin County Housing Authority.
Town Administrator Steve Ellis mentioned that there are “very few” models for Montague to work from regarding a marijuana facility, but he feels that the town is taking “a fair but appropriately assertive approach.”
Members of the business hosted a community outreach session last week where any community member could express concern, support, or ask questions about the business’s plans for the community.
“For the most part, it was a really good discussion,” said 253 Organic partner Seth Rutherford.
The discussion prompted business members to agree to open the dispensary at 9 a.m. for the first year rather than 8 a.m. after one resident voiced concern that people lining up for the retail shop could cause a “spectacle” for school buses passing by.
Currently the business is in the process of getting engineers to check for asbestos. Rutherford said that he expects to have a full set of drawings completed by the end of May so the construction bidding process can begin. Construction is expected to begin July 1 and production is expected for the fall.
Reach Christie Wisniewski at: cwisniewski@recorder.com
or 413-772-0261, ext. 280