IRON MOUNTAIN — Citizens will be asked to give input on whether to expand the number of marijuana dispensaries in Iron Mountain at a public forum scheduled for 6 p.m. Monday, Oct. 24, at City Hall.
The city council set the forum after discussing options Monday for modifying the local ordinance that governs marijuana businesses. Two established growing facilities in the city — The Source and Superior Selections — are on a waiting list for retail licenses and have approached the council saying their products aren’t being locally offered for sale.
Rize and Lume, the two enterprises awarded retail licenses in 2019 through a competitive process, have declined to carry products from other Iron Mountain facilities.
City Attorney Gerry Pirkola began a discussion with the council by remarking, “There’s a ton of litigation out there,” adding that none of it, fortunately, directly involves Iron Mountain. Although most cases are being decided in favor of local governments, a “lot of municipalities are tangled up” in lawsuits, he said.
Iron Mountain opted in for marijuana businesses after Michigan’s marijuana legalization initiative passed in 2018. The city limited its dispensary licenses to two and later moved to allow up to five growing and processing facilities. But unless Rize or Lume were to forfeit their permits, there is no timeline under the current ordinance for any more dispensary licenses to be granted.
Council member Kyle Blomquist suggested the city consider opening up its licensing with the idea of regulating dispensaries, mostly through zoning.
Pirkola said that might be a good approach but warned that zoning is subject to its own legal pitfalls.
Mayor Dale Alessandrini said he would want to limit the number of additional dispensaries to “one or none,” acknowledging a mixed reception in the community to marijuana commerce. Odors have become a frequent complaint on the north side of the city, he said.
Meanwhile, business models are in flux as wholesale cannabis prices have dropped drastically since recreational marijuana was first legalized in the state.
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