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In the local marijuana industry, there are an estimated more than 25 to 50 micro- and mid-sized licensed grow facilities in Detroit with more coming online.
The City of Detroit is progressing in its next step toward adult-use marijuana business licenses in the limited license categories with more application phases that will open in the next few months – and equity is a huge component for everyone to receive a fair slice of the pie.
The city opened applications for the first phase of recreational marijuana licenses over the summer.
Locally, the Detroit City Council in Nov 2020 unanimously voted yes for an ordinance that permits recreational marijuana sales made by adults. Social equity components tied to the ordinance will also yield favorable results for Detroit residents interested in entering this high-profit industry.
With the passage of the 2018 Farm Bill, hemp became federally legal, making all hemp-derived products (like CBD oil) legal in the country. States also can designate their laws, and in late 2018, Then, Michigan became the first Midwestern state to legalize recreational marijuana. In Michigan, only adults over 21 may use cannabis legally.
- The first phase of applications for the limited license types was open between September 1-October 1
- Half of the licenses will be issued to social equity applicants
The City of Detroit plans to issue 160 licenses over three phases of applications, with the first 60 licenses being awarded in Phase One. Applications will be available online at www.homegrowndetroit.org.
There will be 60 licenses awarded in Phase One including:
- 40 Retail: Allows a business to sell marijuana and related products from licensed growers and processors to adult consumers for recreational purposes
- 10 Micro-Business: Allows a small business to vertically integrate by growing and processing up to 150 plants and selling the resulting products to adult consumers for recreational purposes
- 10 Consumption Lounge: Allows a commercial location to host adults to consume marijuana products
“I am thankful for the most recent court ruling which allows the City to begin accepting applications for licensing in our limited adult-use categories,” said City Council President Pro-Tem James Tate. “Getting to this point has been an overly protracted process dating back to 2020 when the first ordinance was unanimously approved by Detroit City Council. Now with the lawsuits and the failed ballot initiatives seeking to overturn our ordinance behind us, Detroiters and other equity applicants will have a fair opportunity to compete for adult-use licenses in a city that welcomes all to participate in the muti-million-dollar adult-use cannabis industry,” Tate added.
Navigating cannabis law and social equity components for Detroiters can be a matrix where some are lost in the regulations, and requirements and wondering what the next step is for their own cannabis establishment down the road.
Homegrown Detroit recently hosted a virtual informational event in mid-October to help attendees review licensing processes and answer questions while providing an environment for potential applicants, property owners, and current licensees to connect and network.
Homegrown Detroit is committed to enhancing the lives of Detroiters through the startup and sustainability of marijuana businesses and entrepreneurship ventures. It is their goal to ensure Detroit citizens have access to essential tools and resources to prepare them to operate safely and successfully in the cannabis industry.
Since voters approved the sale of recreational marijuana in Detroit three years ago, Mayor Mike Duggan’s administration has worked closely with Council President Pro-Tem James Tate seeking equitable opportunities for Detroiters to participate in the adult-use marijuana industry, estimated to yield $3 billion in annual revenue in Michigan by 2024.
The city’s ability to accept applications was delayed in July after two separate lawsuits were filed following City Council approval of the changed adult-use marijuana licensing ordinance in April, and a judge temporarily halted the process before reversing course and upholding the City’s ordinance.
Residents are welcome to join the City of Detroit Homegrown Detroit Program for Cannabis Business Virtual Classes for Entrepreneurs. These informative sessions offer an opportunity to get real-time advice from industry experts, and access resources and technical information about business development, zoning, licensing, and the application process.
Kimberly A. James, director of the Office of Marijuana Ventures & Entrepreneurship, said during the event that the city wants more licensing.
“That is why we’re doing it in three rounds,” James said. “We recognize that social equity applicants may not be ready to apply … (we) want to give people who have property or get property.”
James told the Michigan Chronicle that the current phase is the Homegrown organization is trying to do outreach and have conversations with the community in addition to regular licensing.
“We want to have technical assistance classes every Wednesday and things like that and try to work more with equity applicants themselves and identify a class of people who are closer to getting a license and may only need a couple of nudges,” James said.
Mitzi Ruddock, the founder of Black Cannabis Access (BCA), which helps people navigate politics to equity in cannabis, said during the virtual event that it’s important to help clear the barriers to entry for Black and Brown people and to “be able to move forward in the process” through municipalities to look at their ordinance review and change rulings that disproportionately impact these communities.
“In Michigan, the benefits don’t go directly to those who social equity is meant for,” Ruddock said adding that she commends Detroit for pushing forward with what they have regarding the “laws before us.”
“I know a lot of people are having issues with the biggest thing (being) finding property,” she said. “We know the city is trying to work to improve the property and available property in zoned areas.”
Robin Schneider, executive director for the Michigan Cannabis Industry Association, told the Michigan Chronicle that during one breakout session during the virtual event, attendees have discussed how hard it is to find land.
“It is very difficult,” she said adding that those interested in getting in the business should talk about fundraising ideas, obtaining an investor, and “sell your dream.”
“I think a lot of what we gathered today has been (about the) importance of land control and the applicants need some assistance with navigating (that),” she said.
Schneider who has been in cannabis law for 14 years, said that building or finding property seems to be the “missing piece” because the land has to be zoned correctly or there are limitations with how far a business can be located near a school or elsewhere.
“Thinking outside the box,” she said is key of finding non-traditional buildings that could be up for sale but are not listed. “Get creative when searching for property.”
For more information visit www.micia.org.
Licenses in Phases Two and Three will be awarded soon and will be evenly distributed among general and social equity applicants:
Phase 2
- 30 Retail
- 10 Micro-Business
- 10 Consumption Lounge
Phase 3
- 30 Retail
- 10 Micro-Business
- 10 Consumption Lounge
Visit www.homegrowndetroit.org for class schedules, how-to videos, program updates, and coming events in Fall 2022.
Staff Writer Rasha Almulaiki contributed to this report.
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