A package of ordinances that would allow for marijuana facilities to be established in Ludington is making its way through final approvals from the city.
Ludington City Manager Mitch Foster on Friday released the draft of ordinance changes, maps and a scoring rubric that will be used to determine what kinds of marijuana facilities will be allowed.
The city’s ad hoc committee on marijuana came up with a plan similar to several other cities in the state, Foster told the Daily News Monday morning.
“We looked at Marquette, Traverse City, Lowell and Grand Rapids to kind of build the documents,” Foster said. “We took some from Manistee. Lowell is similar in size (to Ludington), so we kind of took from them. Traverse City, Marquette and Grand Rapids made it easier to borrow from them directly.”
The city received “a lot” of interest from parties looking to start a business in Ludington, Foster said.
“We’re getting calls from California, Colorado, Detroit,” Foster said. “It’s really just general in nature. They haven’t been as explicit as (to what type of business).”
The package doesn’t just address retail outlets for marijuana, but also growers, processors, secure transporters and safety compliance facilities.
“A number of the committee members were asked to see if they would prefer non-retail options (as well as) retail,” Foster said. “The committee wanted to be as creative as possible.”
Retail establishments would be permitted in zoning areas of C1 or Old Town Business; C2 general retail; maritime commercial areas; and the waterfront maritime district, according to the draft ordinances. Growers, processors, secure transporters, safety compliance and excess growers would be permitted only in the wholesale and light industry manufacturing district or the the heavy industry manufacturing district.
“It doesn’t include consumption, micro-businesses or events,” Foster said.
Any marijuana business cannot be within 500 feet of a school or daycare facility. However, if a daycare or school start business within 500 feet of an already established marijuana business, the marijuana business would not lose its ability to operate.
The ordinances also call for a 500-foot distance between marijuana establishments. Foster said he was working on the mapping to see just how many marijuana businesses could be within the city limits.
“The number we have from one business or one interested party was that the City of Ludington could handle three to five retail facilities, and they didn’t know the number of other (businesses),” Foster said.
The proposed ordinances call for employees to be at least 21 years old and not be convicted of providing or distributing controlled substances to minors, along with a general background check. Patrons of the establishments also must be 21 or older.
Marijuana cannot be consumed on the premises of these businesses, nor can alcohol or tobacco.
To start the business, Foster said it’s a two-part process. He said prospective businesses have to either have a license from the Michigan Department of Licensing and Regulatory Affairs or have the ability to get a license from LARA. The proposed ordinance explicitly states a state license must be obtained first.
“They have to show they have the pre-qualification from LARA, from the marijuana commission,” Foster said.
The prospective business then needs to go through the city’s process. Part of the process is getting a special land use permit for the business through the city, and the other part is getting the license from the city. The marijuana license is $5,000, and is due to the city each year.
The process includes a scoring rubric that each applicant will need to go through, and it’s weighted toward those businesses that already have experience in the industry.
“Within the scoring rubric, in order for the city (to have oversight), there are two categories where there they have experience in the business or experience in a business that is similar,” Foster said. “Those have higher point values.”
The ordinance spells out an appeal process for businesses that have a license but are in the process of potentially losing it. However, for first-time license pursuers, Foster said an applicant will need to work with the city to satisfy requirements in the rubric, raise the score and be eligible for license approval.
“Because it’s early on, because of the scoring rubric, to correct the remedy (in the scoring), there isn’t really a need for (an appeal) of the application itself,” Foster said.
Foster said the planning commission will take up the zoning portion of the new ordinances in November. He anticipates a first reading of the ordinances by the City Council at the Nov. 14 regular meeting with a second reading on Nov. 28.
When could the first applicants put in for their licenses? Foster said he wasn’t sure, but believed the process could play out similar to that for short-term rentals in the city. There was a time period after the passage of the ordinances allowing for short-term rentals and those licensees to apply. Those dates are not set.
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