Recreational marijuana could come to Grand Rapids this year under expedited plan

GRAND RAPIDS, MI — Recreational marijuana shops could be coming this year to Grand Rapids under a revised plan up for vote by city leaders in July.

The plan would “fast track” license applications for recreational marijuana retailers for final consideration and approval later this summer. It would also allow them to open this summer.

The Grand Rapids City Commission will vote on that plan, which also establishes the licensing and zoning framework for recreational marijuana businesses, at their July 7 meeting.

The proposed plan by city staff initially called for a delay in accepting recreational retail license applications until October, with the process for consideration and approval not expected to start until January 2021.

However, it did allow other recreational marijuana businesses, such as growers, processors, secure transporters and safety compliance facilities, to apply for licenses and start business operations on the proposed, tentative “fast track” date of July 20.

Commissioner Jon O’Connor, at the commission’s Committee of the Whole on Tuesday, June 16, spearheaded an amendment to the plan to group retailers onto that “fast track” date.

O’Connor called it “problematic” to give differential treatment to retailers from other fast-tracked businesses in the same industry.

He said that, in the short term, the city should allow medical marijuana provisioning centers already approved by the planning commission to convert to recreational marijuana dispensaries, should they choose.

O’Connor told commissioners he is not advocating that, in the short term, they allow anymore retail marijuana businesses.

“I’m saying, let’s let the ones that we have here operate to their maximum capacity so that they can be successful and provide tax revenues to the people of Grand Rapids,” he said.

So far, the city’s Planning Commission has approved plans for 26 medical marijuana provisioning centers in the city. Only four of them, as of June 18, have secured a state operating license.

Commissioners O’Connor, Joe Jones, Nathaniel Moody and Kurt Reppart voted in favor of the fast tracking retail recreational marijuana. Mayor Rosalyn Bliss and Commissioners Senita Lenear and Milinda Ysasi were opposed.

“I’m not in favor of moving forward with retailers for recreational at this time, because I think we have too much work to do on the equity side of it, including the non-profit and how do we fix some things on the back-end to move those through on a fast-track basis,” Lenear said.

It wasn’t immediately clear if the proposed plan would only allow medical provisioning centers to convert to recreational dispensaries or if it would also allow new recreational retailers. City officials did not return comment.

The proposed licensing and zoning framework for recreational marijuana also includes provisions to prioritize and reduce fees for applicants impacted by marijuana convictions.

These applicants, dubbed “Equity Applicants,” would have their applications go to the front of the line for consideration. To be considered an Equity Applicant, they must meet three of the following six criteria:

• Have a Kent County marijuana conviction,
• Have a relative with a Kent County marijuana conviction,
• Have been displaced from housing in Grand Rapids due to a marijuana conviction,
• Have been a Grand Rapids resident for at least 10 years between 1971 and 2018,
• Make no more than 80 percent of the current median income in Kent County, or
• Have been denied educational opportunities, disciplined at work, lost public assistance or suffered any other form of economic harm due to a marijuana conviction.

Higher prioritization for application consideration would also be given to those that rank higher in the following categories: local ownership, workforce diversity, supplier diversity, new business development, and donating a percentage of sales to a newly-formed Grand Rapids Community Cannabis Reinvestment Fund.

Participation in this ranking system is voluntary. However, not participating would move an application to the back of the line for consideration.

The Reinvestment Fund in the proposed plan would be overseen by a non-profit formed by the city. City officials envision the non-profit would utilize the fund to administer social equity programs, grants, loans and community investments.

Only two much smaller cities in Kent County currently accept licenses and applications for recreational marijuana dispensaries – Lowell and Cedar Springs.

Earlier this year, on March 17, the city commission voted 5-2 to delay the acceptance of recreational marijuana applications until Oct. 20. Prior to that vote, applications would’ve been taken on April 20.

Some in favor said more time was needed to evaluate the system the city put in place to allow medical marijuana businesses and to prepare for the expansion of the industry to include recreational businesses.

O’Connor and Moody opposed the move.

Michigan voters legalized recreational marijuana in November 2018.

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