Communities early to opt in see economic development benefits of recreational cannabis

Cities that turned to recreational cannabis early are now seeing the benefits of entrepreneurs converting old properties into sleek, modern retail businesses.

Muskegon, for example, originally created a medical marijuana overlay neighborhood to steer development in an underutilized industrial district of the city. The city’s first pharmacy, Park Place Provisionary at 1922 Park St., renamed New Standard Park Place, began selling recreational cannabis on January 17, 2020.

Muskegon now has six pharmacies east of Seaway Drive. Last fall, city commissioners, in a split vote, changed their zoning ordinance to expand the marijuana district and add six individual lots.

Muskegon Planning Director Mike Franzak called the city’s overlay district approach a success story.

“We have taken areas that have been heavily disinvested and that are easy to find along key corridors,” said Franzak. “We were able to enter this area and see an amazing transformation. It looks like a completely different corridor than before, and that was in our original overlay district. ”

The city’s zoning ordinance was recently changed again to allow micro-businesses – who can grow up to 150 plants, process products, and sell to adults, but not to other adult facilities – operate in additional locations around the city, including near downtown to become.

“We decided that there were some other key properties around town that we didn’t get reinvested in, some older buildings that the cannabis industry could use to boost other projects in the area,” said Franzak.

Massive, aging industrial buildings across the city are also being reviewed for conversion to cannabis retail businesses, Franzak said.

“Investments don’t seem to be ending,” he said. “It was just really good for our economy, lots of jobs are being hired and it strengthens our tax base.”

The city of Kalamazoo has had similar success since it passed its medical marijuana ordinance in 2018, said deputy city planner Pete Eldridge. The city now has 12 recreational cannabis retail stores across the city, according to state data.

“Manufacturing warehouses and older buildings have been refurbished in some of our community corridors such as Portage Street, and this has definitely had a very positive effect on some of our decaying building stock,” said Eldridge.

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Julie Moorehead, co-owner of Timber Cannabis Co. at 313 W. Laketon Ave. in Muskegon, initially saw potential in the property, which comprised a derelict former banquet hall.

“It’s right on Laketon Avenue, so I’m sure the city is enjoying the refreshment that cannabis companies are doing in town,” said Moorehead. “As soon as land is divided into a ‘green zone’, prices go up.”

While cities that have turned to recreational cannabis have taken different approaches to zoning the industry, property prices tended to explode.

“Right now, that’s the barrier to growth in the industry: the lack of real estate available, no question about it,” said Ben Wrigley, partner at Cannalex Law in Cascade Township. “The properties are so popular because there are only so many of them.”

Timber Cannabis installed a new roof, renewed the parking lot, and added new flooring and landscaping.

“I was really surprised and excited about our end product. It now looks like a posh establishment with a comfortable atmosphere, ”said Moorehead.

Muskegon’s overlay district approach was an alternative to limiting the number of cannabis companies that could operate there. As a result, new retail stores compete for customers, often with newly upgraded facilities.

“Many of our employees live nearby and appreciate the aesthetics,” said Moorehead.