Katelyn Baker
Well-Known Member
Lansing - Uncertainty about the city's proposed commercial medical marijuana ordinance has created an uneasy situation for Jeff Nemeth.
Nemeth is CEO of a cannabis testing facility called ACT Laboratories Inc. Nearly $200,000 has been invested in his business that's been located in a light industrial corridor between Cedar Street and Pennsylvania Avenue for over a year and a half. It generates a loyal following with state-registered caregivers and patients. It hosts monthly support group meetings of up to 50 people that are aimed to educate patients, family members and organizations.
And it could soon be on its way to Jackson.
The lab would likely have a problem if Lansing's City Council approves the proposed ordinance -- with a distance requirement Nemeth finds unfair. This ordinance's latest draft states a "marijuana safety compliance facility" must be at least 1,000 feet from a park.
ACT Laboratories, 617 E. Hazel St., according to the city's Planning Office, is located 940 feet from Cherry Hill Park, located on the opposite side of Interstate 496. The proposed distance requirement also pertains to what could be up to 70 open marijuana dispensaries in Lansing.
"Basically they are just trying to zone everybody out of business," Nemeth said of officials. "And that's not what zoning is for."
Nemeth, a Chelsea native, said last week that he and his business partners are serious about a move. They thought about buying the building where the lab is located, but will stick to paying $1,600 a month in rent -- for now. Nemeth is a state-registered medical marijuana patient who is banking on ACT Laboratories to be a major player in Lansing's medical marijuana game once there's more clarity with local regulations.
It will take a while for that to happen. The city's Committee on Public Safety, the City Attorney's Office and the Planning Board continue to review and debate what's now a sixth draft of the ordinance. If the city finds a way to create safe, legal and fair policy, and it complements expected changes in state law, then it could reap benefits from a multi-million dollar industry.
An ArcView Market Research/New Frontier Data study estimates legal market sales in the U.S. are expected to surpass $22 billion by 2020. Mayor Virg Bernero sees an opportunity for Lansing to thrive -- if it can find proper balance with an ordinance that encourages economic growth and protects the public.
"The medical marijuana industry in Lansing is already creating jobs, turning vacant properties into viable businesses, and generating new tax revenues that help support essential city services like police and fire protection," Bernero said in a statement. "We only need to ensure these facilities are safe and secure, and that we have reasonable zoning standards to prevent clustering of provisioning centers. That's what our city ordinance should reflect."
Security doesn't appear to be a problem at ACT Laboratories. Two locked doors secure the entryway to a facility that has 24-hour surveillance. Visitors are only allowed into the building if they have a state-registered medical marijuana card and a driver's license. The lab only receives samples from registered caregivers and patients. Samples are destroyed once testing is completed. Nemeth keeps track of who enters and leaves the lab. Samples, including edibles and oils, are tested for their safety and potency. Technology in the lab tests for conditions like mold, mildew, E. coli, salmonella and multiple forms of bacteria.
Most sample tests about $20 to $40 for caregivers, but many are conducted free for patients, especially children. The lab receives samples from patients and caregivers that are typically a quarter of a gram. Samples are evaluated in a lab that is accredited to an international (ISO) standard and audited by a third party. The ISO accreditation is a standard most labs hold to be deemed technically competent. Turnaround time for results is typically no more than a week.
"We're trying to put the legitimacy behind this," Nemeth said. He estimates the lab, currently with six full-time employees, could create up to 35 full-time jobs by 2018. Salaries for those jobs would likely range from $35,000 (entry level lab staffer) to $70,000 (scientist). ACT Laboratories already has a second location in Morton, Ill., near Peoria, and also intends to open a research lab in Pennsylvania.
Lansing's eight-member Planning Board is taking its time to review the ordinance. The board is expected to revisit the ordinance, including proposed distance requirements, at its Jan. 3 meeting. If the board approves the ordinance, it would be sent back to the public safety committee. The committee would have to send the ordinance to council's full eight-member body for a vote.
At-Large Council Member Carol Wood, chair of the committee, said she has spoken with Nemeth and understands why he's contemplating a move to Jackson. She appreciates the jobs and investment. She doesn't want the ordinance to drive business away. But she warns that all businesses put themselves at risk if they open before local ordinances are approved.
"It's like building a house on a piece of property you haven't closed on," Wood said.
Wood also added there likely will be state laws coming soon that address distance and zoning requirements the city can't argue. Since there are still several unknowns, she advises critics of the ordinance to stay patient and not make assumptions since there are only drafts to work with.
A public safety meeting is scheduled for 3:30 p.m. Friday at City Hall to discuss the ordinance. The City Attorney's Office is expected to provide potential changes.
Under the proposed ordinance's most recent draft -- its sixth -- marijuana safety compliance facilities, processor facilities and dispensaries all must follow the same distance requirements. They can't be within 1,000 feet of parks, schools and child care centers. These businesses also must be at least 500 feet away from other marijuana establishments, substance abuse centers and churches.
ACT Laboratories appears to be in a unique situation that could prompt city officials to offer some leniency. It is one of only two internationally accredited testing facilities of its kind in the state. Nemeth expects Michigan to eventually require mandatory testing for medical marijuana and related products, a move that will lead to more laboratories. Illinois has mandatory testing.
"Once Michigan goes through it, that changes our company," Nemeth said. He anticipates ACT Laboratories will eventually conduct 5,000 tests a month once testing becomes mandatory. The lab currently conducts about 30 tests monthly.
Iron Laboratories, a testing facility in Walled Lake, has thrived for six years without much local regulation. It's located in a "light commercial" area, has tested over 90,000 samples from around the state and gets business from about 25 dispensaries in Lansing, said Howard Lutz, the lab's CEO.
If Lansing is going to create an ordinance with distance requirements, it must take into consideration patients' medicinal needs, Lutz said. Lutz said he has a great relationship with Walled Lake officials because they are pleased with the lab's location.
"You have to be sensible about where you are (as a business), Lutz said. "But at the same time you have to be accessible to your clients."
Iron Laboratories and ACT Laboratories have business practices that fall within the Michigan Marihuana Act of 2008 that allows state-licensed patients to get their medicine from a licensed caregiver. According to current law, caregivers can grow up to 72 plants in their homes because they are allowed to care for up to five patients. A patient can grow up to 12 plans in his or her home.
On May 21, Lansing officials set a moratorium on the opening of new marijuana establishments, including dispensaries. Before then, the establishments were left to operate at their own peril.
A state-appointed board is expected to be formed next month to help determine how new laws supporting the industry should be enacted.
Gov. Rick Snyder signed in September a bill that provides for licensing of dispensaries and other establishments. The bill also approved regulation of growers, processors, transporters and safety compliance facilities. He also signed two separate bills that create a "seed-to-sale" tracking system for medical marijuana and allow for the production of non-smokable forms, including brownies or oils.
With so many issues at state, Josh Hovey, a member of the city's Planning Board, hopes an ordinance can be created soon that makes sense of it all. He said the goal of an ordinance shouldn't be to exclude businesses that are legal now or will be soon. Hovey believes there's a way to support business, honor the rights of patients and caregivers, and ensure public safety.
"People are going to find a way to get access to their medicine one way or another," Hovey said.
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Marijuana Ordinance Could Force Company Out, CEO Says
Author: Eric Lacy
Contact: 1-517-377-1000
Photo Credit: Dave Wasinger
Website: Lansing State Journal
Nemeth is CEO of a cannabis testing facility called ACT Laboratories Inc. Nearly $200,000 has been invested in his business that's been located in a light industrial corridor between Cedar Street and Pennsylvania Avenue for over a year and a half. It generates a loyal following with state-registered caregivers and patients. It hosts monthly support group meetings of up to 50 people that are aimed to educate patients, family members and organizations.
And it could soon be on its way to Jackson.
The lab would likely have a problem if Lansing's City Council approves the proposed ordinance -- with a distance requirement Nemeth finds unfair. This ordinance's latest draft states a "marijuana safety compliance facility" must be at least 1,000 feet from a park.
ACT Laboratories, 617 E. Hazel St., according to the city's Planning Office, is located 940 feet from Cherry Hill Park, located on the opposite side of Interstate 496. The proposed distance requirement also pertains to what could be up to 70 open marijuana dispensaries in Lansing.
"Basically they are just trying to zone everybody out of business," Nemeth said of officials. "And that's not what zoning is for."
Nemeth, a Chelsea native, said last week that he and his business partners are serious about a move. They thought about buying the building where the lab is located, but will stick to paying $1,600 a month in rent -- for now. Nemeth is a state-registered medical marijuana patient who is banking on ACT Laboratories to be a major player in Lansing's medical marijuana game once there's more clarity with local regulations.
It will take a while for that to happen. The city's Committee on Public Safety, the City Attorney's Office and the Planning Board continue to review and debate what's now a sixth draft of the ordinance. If the city finds a way to create safe, legal and fair policy, and it complements expected changes in state law, then it could reap benefits from a multi-million dollar industry.
An ArcView Market Research/New Frontier Data study estimates legal market sales in the U.S. are expected to surpass $22 billion by 2020. Mayor Virg Bernero sees an opportunity for Lansing to thrive -- if it can find proper balance with an ordinance that encourages economic growth and protects the public.
"The medical marijuana industry in Lansing is already creating jobs, turning vacant properties into viable businesses, and generating new tax revenues that help support essential city services like police and fire protection," Bernero said in a statement. "We only need to ensure these facilities are safe and secure, and that we have reasonable zoning standards to prevent clustering of provisioning centers. That's what our city ordinance should reflect."
Security doesn't appear to be a problem at ACT Laboratories. Two locked doors secure the entryway to a facility that has 24-hour surveillance. Visitors are only allowed into the building if they have a state-registered medical marijuana card and a driver's license. The lab only receives samples from registered caregivers and patients. Samples are destroyed once testing is completed. Nemeth keeps track of who enters and leaves the lab. Samples, including edibles and oils, are tested for their safety and potency. Technology in the lab tests for conditions like mold, mildew, E. coli, salmonella and multiple forms of bacteria.
Most sample tests about $20 to $40 for caregivers, but many are conducted free for patients, especially children. The lab receives samples from patients and caregivers that are typically a quarter of a gram. Samples are evaluated in a lab that is accredited to an international (ISO) standard and audited by a third party. The ISO accreditation is a standard most labs hold to be deemed technically competent. Turnaround time for results is typically no more than a week.
"We're trying to put the legitimacy behind this," Nemeth said. He estimates the lab, currently with six full-time employees, could create up to 35 full-time jobs by 2018. Salaries for those jobs would likely range from $35,000 (entry level lab staffer) to $70,000 (scientist). ACT Laboratories already has a second location in Morton, Ill., near Peoria, and also intends to open a research lab in Pennsylvania.
Lansing's eight-member Planning Board is taking its time to review the ordinance. The board is expected to revisit the ordinance, including proposed distance requirements, at its Jan. 3 meeting. If the board approves the ordinance, it would be sent back to the public safety committee. The committee would have to send the ordinance to council's full eight-member body for a vote.
At-Large Council Member Carol Wood, chair of the committee, said she has spoken with Nemeth and understands why he's contemplating a move to Jackson. She appreciates the jobs and investment. She doesn't want the ordinance to drive business away. But she warns that all businesses put themselves at risk if they open before local ordinances are approved.
"It's like building a house on a piece of property you haven't closed on," Wood said.
Wood also added there likely will be state laws coming soon that address distance and zoning requirements the city can't argue. Since there are still several unknowns, she advises critics of the ordinance to stay patient and not make assumptions since there are only drafts to work with.
A public safety meeting is scheduled for 3:30 p.m. Friday at City Hall to discuss the ordinance. The City Attorney's Office is expected to provide potential changes.
Under the proposed ordinance's most recent draft -- its sixth -- marijuana safety compliance facilities, processor facilities and dispensaries all must follow the same distance requirements. They can't be within 1,000 feet of parks, schools and child care centers. These businesses also must be at least 500 feet away from other marijuana establishments, substance abuse centers and churches.
ACT Laboratories appears to be in a unique situation that could prompt city officials to offer some leniency. It is one of only two internationally accredited testing facilities of its kind in the state. Nemeth expects Michigan to eventually require mandatory testing for medical marijuana and related products, a move that will lead to more laboratories. Illinois has mandatory testing.
"Once Michigan goes through it, that changes our company," Nemeth said. He anticipates ACT Laboratories will eventually conduct 5,000 tests a month once testing becomes mandatory. The lab currently conducts about 30 tests monthly.
Iron Laboratories, a testing facility in Walled Lake, has thrived for six years without much local regulation. It's located in a "light commercial" area, has tested over 90,000 samples from around the state and gets business from about 25 dispensaries in Lansing, said Howard Lutz, the lab's CEO.
If Lansing is going to create an ordinance with distance requirements, it must take into consideration patients' medicinal needs, Lutz said. Lutz said he has a great relationship with Walled Lake officials because they are pleased with the lab's location.
"You have to be sensible about where you are (as a business), Lutz said. "But at the same time you have to be accessible to your clients."
Iron Laboratories and ACT Laboratories have business practices that fall within the Michigan Marihuana Act of 2008 that allows state-licensed patients to get their medicine from a licensed caregiver. According to current law, caregivers can grow up to 72 plants in their homes because they are allowed to care for up to five patients. A patient can grow up to 12 plans in his or her home.
On May 21, Lansing officials set a moratorium on the opening of new marijuana establishments, including dispensaries. Before then, the establishments were left to operate at their own peril.
A state-appointed board is expected to be formed next month to help determine how new laws supporting the industry should be enacted.
Gov. Rick Snyder signed in September a bill that provides for licensing of dispensaries and other establishments. The bill also approved regulation of growers, processors, transporters and safety compliance facilities. He also signed two separate bills that create a "seed-to-sale" tracking system for medical marijuana and allow for the production of non-smokable forms, including brownies or oils.
With so many issues at state, Josh Hovey, a member of the city's Planning Board, hopes an ordinance can be created soon that makes sense of it all. He said the goal of an ordinance shouldn't be to exclude businesses that are legal now or will be soon. Hovey believes there's a way to support business, honor the rights of patients and caregivers, and ensure public safety.
"People are going to find a way to get access to their medicine one way or another," Hovey said.
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Marijuana Ordinance Could Force Company Out, CEO Says
Author: Eric Lacy
Contact: 1-517-377-1000
Photo Credit: Dave Wasinger
Website: Lansing State Journal
