MI: Annual Fees Set For Kalamazoo Medical Marijuana Facilities

Photo Credit: Matt Nager

Monday, the Kalamazoo City Commission set annual fees charged to medical marijuana businesses.

State laws governing medical marijuana facilities in Michigan allow local municipalities to set annual nonrefundable fees up to $5,000, in addition to a $6,000 one-time application fee paid to the state. Entrepreneurs must receive a permit from the city clerk’s office as well as a license from the state of Michigan before opening a marijuana business.

Kalamazoo set annual fees for a provisioning center at $3,000. Fees for the other four types of marijuana facilities will cost $5,000.

The permit fee for provisioning centers is based on a section of the City Charter changed before recent state laws governing medical marijuana facilities. It sets the registration fee for “Medical Cannabis Dispensaries,” a term used to describe facilities analogous to provisioning centers, at $3,000.

City Attorney Clyde Robinson determined there is no rational basis for treating dispensaries defined in the City Charter differently than provisioning centers defined by state law.

Annual fees must be paid in addition to other local licensing and permitting requirements for things like site plan review, zoning review, inspections, or building permits.

Of each permit fee, $500 is non-refundable. The remaining portion of each fee may be refunded if a medical marihuana permit is not issued, as it’s designated for costs associated with ongoing administration and enforcement activities.

It’s yet to be seen how much revenue the permit fees will generate for the city of Kalamazoo.

The clerk’s office will begin accepting the permit applications, which must be submitted in person, between 8 a.m. Thursday, June 7 and 5 p.m. Thursday, June 28.

A provisional certificate will be issued to successful applications, which can be taken to the state for a required operating license.

Within 30 days of receiving a provisional certificate, applicants must provide proof to the clerk that they applied for a license with the state. Applicants can also receive a local permit after obtaining a state license.

During this first license year, staff will be tracking time and expenses spent on activities related to administering the application process and enforcing Kalamazoo’s medical marijuana ordinances. This data will be evaluated and used to recommend adjustments to the fees in the future.

Application forms are available from the city clerk’s office at City Hall, 241 W. South St. or online at kalamazoocity.org/medicalmarihuana.

The City Commission placed no number limit on the number of growers, processors, safety compliance facilities, secure transporters and provisioning centers allowed within city limits.

Instead, zoning restrictions are intended to create a market cap on how many marijuana businesses can exist.

All facilities are restrained to manufacturing and commercial districts. None are allowed in residential neighborhoods.