Marijuana production facility approved in Ulster County

The planning approval process “went quicker than most projects,” said Ulster County Director of Economic Development Tim Weidemann. “It’s a model of what we should try to do for other big projects. We’ve seen so many of them get stuck in this process, and now we have a roadmap for others.”

Cresco Labs in August proposed taking over the former Schrade Knife and Avnet Channel Master facilities in Wawarsing to create a marijuana cultivation, manufacturing, and distribution plant on the 91-acre lot that has sat empty for 17 years. Of that total footprint, 6.6 acres fall within the Village of Ellenville. Because the geographic split heavily favors the Town of Wawarsing, that municipality oversees the project.

The applicant for the marijuana facility in Wawarsing is Valley Agriceuticals, LLC, which currently operates a medical marijuana manufacturing facility in the Town of Wallkill and four medical marijuana dispensaries across the state. Its parent company is Chicago-based Cresco Labs, which operates in 10 states nationwide where medical marijuana is legal.

Cresco originally forecasted creating 300 to 400 jobs at the processing plant, but increased that estimate to up to 679 future employees, as outlined in the approved proposal. Parking and traffic assessments were undertaken using this number, which estimates 510 parked vehicles could be on site during the busiest shift.

During the public hearing process, some residents expressed concern that the cannabis facility would emit a strong odor. According to the approved submission, the plant will use carbon filtration systems to help reduce smelly emissions, which is consistent with industry standards. The facility also plans to have a dedicated local employee to respond to odor complaints by phone. In another effort to block odors from escaping outside, the proposal indicates the installation of air “curtains” at significant external doorways, which use forced air to create a pressurized barrier between interior and exterior air.

Riverkeeper also expressed concern about the new facility, specifically impacts on wastewater at the nearby Naponach Wastewater Treatment Facility from potential pollutants that could infiltrate nearby waterways like the Rondout Creek and Hudson River. The Town of Wawarsing Environmental Conservation Committee followed suit with similar concerns. Cresco Labs responded by saying the project is in balance with the environment, and also noted that the Naponach Wastewater Treatment Plant is being upgraded and modernized.

Financial and regulatory approvals are the next steps for Cresco Labs.

Cresco Labs needs to work with the Cannabis Control Board and the Office of Cannabis Management to secure an adult-use license for vertically integrated operation that includes cultivation, processing and distribution, but not sales. They are currently licensed under the medical program. Additionally, Cresco Labs is working with the Ulster County Industrial Development Agency and banks for financing options for the project.

Weidemann said Cresco Labs is still on track to get shovels in the ground by the end of the second quarter this year. Construction could be completed within 12 to 18 months after all approvals.

“Every win adds momentum to the project,” said Weidemann. “This is a big win, but they do still have challenges ahead. It’s hard to know how significant they’ll be until we are up against them.”

Cresco Labs isn’t the first cannabis production facility proposed in the Hudson Valley. In Orange County, Green Thumb Industries plans to build a growing and distribution facility at the Warwick Technology Park at the site of the former Mid-Orange Correctional Facility.