Katelyn Baker
Well-Known Member
Springfield, Massachusetts - Several city councilors said Tuesday they have serious concerns that a proposed agreement for a medical marijuana dispensary in East Springfield would essentially its operator "monopoly" in the city for 10 years.
The issue arose during a meeting of the council's Health and Human Services Committee at City Hall, as councilors discussed the terms of a host community agreement that was negotiated between the mayor and his top advisers and the company, Hampden Care Facility Inc. of Chicopee.
Mayor Domenic J. Sarno has asked the council to approve the agreement, which sets conditions for the company planning to open the marijuana dispensary at 506 Cottage St.
Under one negotiated clause in the five-page city agreement, "the city agrees that it shall not issue a letter of support or non-opposition to another firm" seeking to open a marijuana facility in Springfield.
"The business terms of the deal seem to be appropriate except the prohibition for 10 years," Council President Michael Fenton said. "One decade is a long time to have just one dispensary."
The agreement includes annual payments to the city, referred to as donations, that begin at 3 percent of the company's gross revenues and rises gradually to a maximum of 7 percent of the gross revenues plus an annual payment of $50,000 to the Police Department.
Several councilors attending the meeting said they did not object to the amount of the payments, but some said they had concerns how the money would be spent and had concerns that Hampden Care Facility would be the exclusive dispensary.
City Solicitor Edward Pikula said the agreement allows the mayor to reopen negotiations should he determine there is any need for a second dispensary.
Under the Plan A (strong mayor) form of government in Springfield, the mayor has the exclusive power to negotiate contracts, Pikula said, adding that the process for the dispensary does give the council the right to propose amendments, subject to the mayor's approval and the potential need for renegotiations of the host agreement.
Frank Antonucci, a lawyer for Hampden Care Facility, said 10-year provision was negotiated in good faith, and is very important to the company as it invests up to $2 million in initial costs for its dispensary.
Councilors and Sarno have said they support the marijuana dispensary and are not seeking to create any significant delay in the process. Committee Chairman Adam Gomez said he hopes the matter will be brought out for a vote by the full council in mid-August.
Fenton said he reviewed other communities' agreements with marijuana facilities and found that Worcester's agreement would allow up to four dispensaries, while Springfield is limited to one company. Springfield does not want to stand out as the only community giving 10 years of exclusivity to a dispensary, he said.
The payments from Hampden Care Facility are slated to go to the city's general fund, but Gomez was among councilors saying they want money earmarked for specific uses. Gomez said the council is doing its "due diligence," asking questions and trying to make sure the residents and city is getting the best deal possible.
Other councilors participating in the meeting were Orlando Ramos, Justin Hurst, Melvin Edwards and Marcus Williams.
Hampden Care Facility estimates its gross revenues will be $3.6 million the first year, close to $5 million the second year and more than $6 million the third year.
Under the host community agreement, the city would receive 3 percent of that revenue in 2017, followed by 4 percent in 2018 and 5 percent in 2019. The amount would increase gradually in subsequent years reaching the maximum of 7 percent by 2025. There would be annual payments of $50,000 to the Police Department, as well as some community donations.
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Springfield City Councilors Object To One Company Having Medical Marijuana 'Monopoly'
Author: Peter Goonan
Contact: Massachusetts Local News
Photo Credit: Peter Goonan
Website: Massachusetts Local News
The issue arose during a meeting of the council's Health and Human Services Committee at City Hall, as councilors discussed the terms of a host community agreement that was negotiated between the mayor and his top advisers and the company, Hampden Care Facility Inc. of Chicopee.
Mayor Domenic J. Sarno has asked the council to approve the agreement, which sets conditions for the company planning to open the marijuana dispensary at 506 Cottage St.
Under one negotiated clause in the five-page city agreement, "the city agrees that it shall not issue a letter of support or non-opposition to another firm" seeking to open a marijuana facility in Springfield.
"The business terms of the deal seem to be appropriate except the prohibition for 10 years," Council President Michael Fenton said. "One decade is a long time to have just one dispensary."
The agreement includes annual payments to the city, referred to as donations, that begin at 3 percent of the company's gross revenues and rises gradually to a maximum of 7 percent of the gross revenues plus an annual payment of $50,000 to the Police Department.
Several councilors attending the meeting said they did not object to the amount of the payments, but some said they had concerns how the money would be spent and had concerns that Hampden Care Facility would be the exclusive dispensary.
City Solicitor Edward Pikula said the agreement allows the mayor to reopen negotiations should he determine there is any need for a second dispensary.
Under the Plan A (strong mayor) form of government in Springfield, the mayor has the exclusive power to negotiate contracts, Pikula said, adding that the process for the dispensary does give the council the right to propose amendments, subject to the mayor's approval and the potential need for renegotiations of the host agreement.
Frank Antonucci, a lawyer for Hampden Care Facility, said 10-year provision was negotiated in good faith, and is very important to the company as it invests up to $2 million in initial costs for its dispensary.
Councilors and Sarno have said they support the marijuana dispensary and are not seeking to create any significant delay in the process. Committee Chairman Adam Gomez said he hopes the matter will be brought out for a vote by the full council in mid-August.
Fenton said he reviewed other communities' agreements with marijuana facilities and found that Worcester's agreement would allow up to four dispensaries, while Springfield is limited to one company. Springfield does not want to stand out as the only community giving 10 years of exclusivity to a dispensary, he said.
The payments from Hampden Care Facility are slated to go to the city's general fund, but Gomez was among councilors saying they want money earmarked for specific uses. Gomez said the council is doing its "due diligence," asking questions and trying to make sure the residents and city is getting the best deal possible.
Other councilors participating in the meeting were Orlando Ramos, Justin Hurst, Melvin Edwards and Marcus Williams.
Hampden Care Facility estimates its gross revenues will be $3.6 million the first year, close to $5 million the second year and more than $6 million the third year.
Under the host community agreement, the city would receive 3 percent of that revenue in 2017, followed by 4 percent in 2018 and 5 percent in 2019. The amount would increase gradually in subsequent years reaching the maximum of 7 percent by 2025. There would be annual payments of $50,000 to the Police Department, as well as some community donations.
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Springfield City Councilors Object To One Company Having Medical Marijuana 'Monopoly'
Author: Peter Goonan
Contact: Massachusetts Local News
Photo Credit: Peter Goonan
Website: Massachusetts Local News
