Ron Strider
Well-Known Member
TheraCann USA Benchmark has abandoned plans to build a $20 million medical marijuana plant in Kingsley.
Richard Goodman, president of TheraCann USA, confirmed the decision on Wednesday, Dec. 13. He cited a variety of reasons for the decision, most notably the time it was taking to finalize plans and concerns over investment and management costs.
A notice issued last month by the Michigan Department of Licensing and Regulatory Affairs that clarified that a single person or company may stack Class C licenses also influenced the decision, Goodman said. Class C licences allow a single holder to possess up to 1,500 plants.
LARA issued the following statement in regard to the clarification:
"Nearly three months ago - on September 28, 2017 - LARA issued an advisory bulletin which clarified our intention to allow a potential licensee to be granted multiple ("stacked") class C grow licenses in a single location. This was not a change in policy but rather a clarification of current state law."
The Kingsley plant proposal was created before the LARA clarification and even though that didn't change Michigan's laws on marijuana licensing, it convinced the company that a change in direction was needed.
TheraCann had been considering whether it may have made sense for it to manage individual growers housed in a central location, even though they would essentially be their competitors. The company ultimately decided against that.
"That just doesn't make sense," Goodman said. "In other states, that situation has gotten nasty. For our own standards, a wholly-owned facility where we can maintain quality is ideal."
Michigan's marijuana policies would allow something like that to take place, a LARA spokesman confirmed. LARA will begin accepting applications for medical marijuana facility licenses on Friday, Dec. 15.
Village officials and representatives of the company have been discussing the topic for more than a year. TheraCann had been proposing the construction of a 100,000-square-foot growing facility that would be located on the east end of town in the village's industrial park near M-113 and U.S. Highway 131.
The proposal would have brought 100-plus jobs to Kingsley, as well as significant tax values to the village and its school district. Officials previously said the taxable value of the village's downtown district would have doubled. The entire district has a taxable value of $6.2 million.
TheraCann's proposal would have had taxable value of $9.5 million, 35 percent more than the village's entire DDA district.
However, TheraCann is now actively looking elsewhere in Michigan, Goodman said. He didn't provide specifics, but said one is "up north," another is "around Kingsley" and one is in Metro Detroit.
Dan Hawkins, the manager of the village in Northern Michigan, was surprised by the decision.
"I was told that there were other communities that were more attractive to them and that they are pursuing them," Hawkins said. "It's stunning because there was a lot of work and energy put in by our councils and community and TheraCann, for the most part, said they were on their way."
Goodman called the decison to move on "painful" considering all the work that has been put in by both sides, but felt it was the best thing for the company.
The decision ends a months-long saga in the village that saw supporters and detractors of the proposal make their voices heard. Hawkins called the proposal "controversial," but said it was mostly supported in the community due to the job creation and economic impact.
"Personally, I'm convinced there is a need for personal medical marijuana," Hawkins said.
So, where does Kingsley go from here?
Hawkins said village officials will take a "one door closes, another opens" approach and will continue to make the necessary efforts to ready the industrial park for any potential development.
Through marketing and word of mouth, officials will make sure information about the space is available to any interested parties, he said.
He added that the backtrack may have bigger things to say about medical marijuana in Michigan and items covered under the Medical Marijuana Facilities Licensing Act.
"News like this goes as a positive and negative," he said. "We were possibly going to be the roadster for Michigan as in a medical marijuana interest this large. That's why we were making every effort to cross the Ts and dot the Is."
"We knew the eyes of Michigan, and maybe even the nation, would be on us," he continued. "With this announcement and reverse of direction, it speaks volumes. Maybe it speaks to the fact that people aren't quite ready to take the necessary steps to actually make something happen?"
Hawkins didn't feel that adversity in the community affected TheraCann's decision to back out of the development.
"That's been there since the beginning," he said. "I can't believe on this day, after all that's been done, that community resistance makes them walk away."
Goodman's statements appear to confirm that opinion.
News Moderator: Ron Strider 420 MAGAZINE ®
Full Article: Company ditches plan to build $20M medical marijuana facility in Michigan | MLive.com
Author: Brandon Champion
Contact: MLive contacts, services and support | MLive Contacts - MLive.com
Photo Credit: Getty Images
Website: Michigan Local News, Breaking News, Sports & Weather - MLive.com
Richard Goodman, president of TheraCann USA, confirmed the decision on Wednesday, Dec. 13. He cited a variety of reasons for the decision, most notably the time it was taking to finalize plans and concerns over investment and management costs.
A notice issued last month by the Michigan Department of Licensing and Regulatory Affairs that clarified that a single person or company may stack Class C licenses also influenced the decision, Goodman said. Class C licences allow a single holder to possess up to 1,500 plants.
LARA issued the following statement in regard to the clarification:
"Nearly three months ago - on September 28, 2017 - LARA issued an advisory bulletin which clarified our intention to allow a potential licensee to be granted multiple ("stacked") class C grow licenses in a single location. This was not a change in policy but rather a clarification of current state law."
The Kingsley plant proposal was created before the LARA clarification and even though that didn't change Michigan's laws on marijuana licensing, it convinced the company that a change in direction was needed.
TheraCann had been considering whether it may have made sense for it to manage individual growers housed in a central location, even though they would essentially be their competitors. The company ultimately decided against that.
"That just doesn't make sense," Goodman said. "In other states, that situation has gotten nasty. For our own standards, a wholly-owned facility where we can maintain quality is ideal."
Michigan's marijuana policies would allow something like that to take place, a LARA spokesman confirmed. LARA will begin accepting applications for medical marijuana facility licenses on Friday, Dec. 15.
Village officials and representatives of the company have been discussing the topic for more than a year. TheraCann had been proposing the construction of a 100,000-square-foot growing facility that would be located on the east end of town in the village's industrial park near M-113 and U.S. Highway 131.
The proposal would have brought 100-plus jobs to Kingsley, as well as significant tax values to the village and its school district. Officials previously said the taxable value of the village's downtown district would have doubled. The entire district has a taxable value of $6.2 million.
TheraCann's proposal would have had taxable value of $9.5 million, 35 percent more than the village's entire DDA district.
However, TheraCann is now actively looking elsewhere in Michigan, Goodman said. He didn't provide specifics, but said one is "up north," another is "around Kingsley" and one is in Metro Detroit.
Dan Hawkins, the manager of the village in Northern Michigan, was surprised by the decision.
"I was told that there were other communities that were more attractive to them and that they are pursuing them," Hawkins said. "It's stunning because there was a lot of work and energy put in by our councils and community and TheraCann, for the most part, said they were on their way."
Goodman called the decison to move on "painful" considering all the work that has been put in by both sides, but felt it was the best thing for the company.
The decision ends a months-long saga in the village that saw supporters and detractors of the proposal make their voices heard. Hawkins called the proposal "controversial," but said it was mostly supported in the community due to the job creation and economic impact.
"Personally, I'm convinced there is a need for personal medical marijuana," Hawkins said.
So, where does Kingsley go from here?
Hawkins said village officials will take a "one door closes, another opens" approach and will continue to make the necessary efforts to ready the industrial park for any potential development.
Through marketing and word of mouth, officials will make sure information about the space is available to any interested parties, he said.
He added that the backtrack may have bigger things to say about medical marijuana in Michigan and items covered under the Medical Marijuana Facilities Licensing Act.
"News like this goes as a positive and negative," he said. "We were possibly going to be the roadster for Michigan as in a medical marijuana interest this large. That's why we were making every effort to cross the Ts and dot the Is."
"We knew the eyes of Michigan, and maybe even the nation, would be on us," he continued. "With this announcement and reverse of direction, it speaks volumes. Maybe it speaks to the fact that people aren't quite ready to take the necessary steps to actually make something happen?"
Hawkins didn't feel that adversity in the community affected TheraCann's decision to back out of the development.
"That's been there since the beginning," he said. "I can't believe on this day, after all that's been done, that community resistance makes them walk away."
Goodman's statements appear to confirm that opinion.
News Moderator: Ron Strider 420 MAGAZINE ®
Full Article: Company ditches plan to build $20M medical marijuana facility in Michigan | MLive.com
Author: Brandon Champion
Contact: MLive contacts, services and support | MLive Contacts - MLive.com
Photo Credit: Getty Images
Website: Michigan Local News, Breaking News, Sports & Weather - MLive.com
