AMHERST — A Pittsfield medical marijuana company that also intends to sell recreational marijuana is a step closer to locating at the long-time site of Rafters Sports Bar & Restaurant.
The Selectboard Monday voted 3-0, with board member Andrew Steinberg abstaining and board member James Wald absent, to issue a letter of non-opposition to the Herbology Group Inc., which has a signed purchase-and-sale agreement for the 422 Amity St. property.
Steinberg said he didn’t participate in the vote because he is not entirely comfortable with three marijuana-related businesses in a compact area of town. Two others medical marijuana companies, Mass Alternative Care at 55 University Drive and MassMedicum at 85 University Drive, have signed host community agreements and received special permits through the Zoning Board of Appeals.
Steinberg previously abstained from a similar vote on a letter of non-opposition for Happy Valley Ventures Inc. of Newton, a company that was looking at the Rafters site and purchased the property for $2 million in December 2016.
Jane Hawman, CEO and president of Herbology, said her company intends to remodel the building to ensure an enhanced flow of patients who need medical marijuana, providing them privacy from entrance to exit, and noted there will be strains of medical marijuana that meet a variety of medical needs.
She became acquainted with medical marijuana while serving in the Air Force and seeing it work wonders on treating her daughter’s illness.
Hawman assured the board Herbology will have high-end aesthetics for the exterior of the building.
Though Happy Valley still has a letter of non-opposition for the site, Economic Development Director Geoff Kravitz gave a recommendation to the board to support Herbology because it already deemed the location appropriate for medical marijuana, and that the state’s Department of Public Health will only consider one applicant for the site.
Phil Silverman, an attorney with Vicente Sederberg, a law firm specializing in marijuana, said the Selectboard shouldn’t be concerned about three shops within a short distance, describing it as different from having a CVS, Walgreens and Rite Aid nearby.
“That’s not how this industry works, for various reasons,” Silverman said, noting that each company would grow and process marijuana in different ways and have products that impact illnesses in a variety of ways.
“There will be competition, but it will not be everyone selling the exact same things,” Silverman said.
Herbology will also have to go to the Zoning Board for a special permit and sign a host community agreement with Town Manager Paul Bockelman.
Happy Valley previously signed a host community agreement that called for providing Amherst $75,000 during the pre-opening phase, then 3 percent of annual revenues minus that initial payment, as well as $15,000 a year to a local charity. The company also agreed to offer employment to local residents.
Rafters will continue to operate until at least November, said Frank Perullo, a consultant for Herbology. While its lease had been set to expire this spring, Herbology extended it for several months.
Perullo said he anticipates a job fair to be held on site and there will be efforts to recruit any Rafters employees who wish to stay.
Selectboard Chairman Douglas Slaughter said he is sensitive that the business will be displacing a successful restaurant, but that is not a sufficient reason to not offer a letter of non-opposition.
Board member Constance Kruger said the board can’t guarantee longevity to Rafters because its owners don’t own the building.
Meanwhile, the board had an extended discussion about establishing a policy for entering into host community agreements with both adult-use and medical marijuana enterprises.
Kravitz suggested a series of steps to consider when entering a host community agreement with companies, including their charitable contributions, tax revenue they would bring, the use of vacant or underused properties, the experience of operators in Massachusetts or elsewhere, and their commitment to sustainability.
Bockelman said he is interested in creating an adequate source of funding through these agreements to establish educational initiatives and health programs that would be developed by the Board of Health and the school district.
One of the quandaries, Bockelman said, is that the town has limits on where recreational marijuana shops can locate, including in downtown, where there may only be a single site suitable. The question then becomes whether he should negotiate a deal with the first company to approach him, have the Selectboard create a procedure to review applicants, and possibly even issue requests for proposal.
Unlike with medical marijuana, Kravitz said there could be companies coming forward trying to make a quick buck, while others may be in the business for the long haul.
But any process aimed at trying to identify the best company, Kruger said, could advantage those with financial means, creating an unlevel playing field for smaller corporations.