Marijuana - Medicinal Legalization leads to Recreational Legalization
How it happened in Grand Haven
Those seeking to legalize marijuana typically begin with medicinal legalization. As society begins to accept medical marijuana usage, a push to legalize recreational products follows because that is where the real money is at. While I do not take issue with people making the personal decision to consume recreational marijuana, I do take issue with politicians and business opportunists working together behind the scenes to change laws for personal gain.
Grand Haven awarded four licenses to local residents to open medicinal marijuana provisioning centers on September 10, 2020. One license holder, Aaron Smith opened a store, New Standard provisioning center on Beacon Blvd. New Standard Grand Haven is one of several stores owned under the name Argi-Med Exit 9 LLC. Aaron Smith is co-owner of New Standard. Just before Kevin McLaughlin was elected to the Grand Haven City Council, Aaron Smith donated $500 to his campaign. Although it was legal to sell recreational marijuana in Michigan in 2018, the City of Grand Haven did not approve permits for recreational provisioning centers until June 20, 2022. During the December 6, 2021, Grand Haven City Council Meeting, Aaron Smith urged city council to expedite recreational approval.
(23:43) “'I’m sharing this letter to provide you information on the status of our New Standard business in Grand Haven, and how the cannabis industry has changed in the State of Michigan since we were awarded a cannabis license for medical use. Of the four licenses awarded for medical marijuana on September 10, 2020, in Grand Haven, we are the only business that has entered a long-term lease, caused approximately four hundred thousand dollars in construction, improved the property and landscape along Beacon Boulevard, and hired and trained nearly 20 full-time employees providing benefits and salaries above a living wage.
We understood that this was a medical-only facility, and respect the fact the city wanted to see how it operated before allowing adult use, and we have done this for the last eight months. Given the change in Michigan cannabis market over the last three years, for medical to adult use, we must also be allowed to sell adult use products. We are losing money at this location every day that we are open as a medical-only store. Unfortunately, if we're not allowed to sell adult-use products in Grand Haven, as soon as possible, we may be forced to close.
We understand that there's a process to get this to happen, and in an effort to save our business, we've been working with our attorney to help outline a thoughtful timeline on how the city can make this happen. The city does not have to create an entirely new adult use zoning or licensing ordinance. Similar to Crockery Township or Saugatuck Township, and many of the other municipalities around Grand Haven that allow adult-use, you're able to use your very well-thought-out, and restrictive zoning and licensing ordinance, for medical as this foundation for adult-use sales.
In this information that I shared with you, there's a proposed simple amendment to the city's medical marijuana ordinance, as well as a simple amendment to the Section 40.331 of the zoning ordinance, which otherwise prohibits adult-use for review and discussion. By allowing a retail store that has gone through the entire medical application process that requires site plan approval from the planning commission, building permits, and occupancy permits, community engagement inspections, and approvals from the State of Michigan, and final licensing from the State of Michigan to allow them to sell cannabis products to an individual with an id over the age of 21, instead of a medical marijuana card. The planning commission, city council, and staff, took many many months to thoughtfully create the medical ordinance that allows facilities in highly commercial and well-thought-out areas. None of this is going to change by simply amending your existing ordinances. This is the most time and cost-effective process for the city as well.
By allowing the planning commission and the city attorney to review this amendment, and validate the process, you will be helping to save and create more jobs in the City of Grand Haven. We urge you to direct staff in the planning commission to consider amending the zoning ordinance, and regulatory ordinance, to allow for recreational marijuana sales, and to bring a recommendation to the city council as soon as possible, so we can commence adult-use cannabis sales in Grand Haven, and not have to seriously consider closing our store.”
Rather than considering the desires of the residents, Grand Haven Council Member Kevin McLaughlin took the opportunity to try to fast-track the approval of recreational marijuana provisioning centers in the City of Grand Haven. He wanted to approve recreational sales so Aaron Smith would not lose his business. During the December 6, 2021, Grand Haven City Council Meeting, Kevin McLaughlin stated,
(1:52:20) Kevin McLaughlin, “We've gotten this letter from Aaron. He spoke again this evening. His business obviously has been dramatically affected, because of all the recreational marijuana shops that have been allowed to open around our region. So, I think that this is something that we should bring before city council. Get the recommendation before city council, let it come back here, and then we can consider it at that point in time. I'd like to get the process started. The resolution says April 18th. I'd love to see if we could move that up a little bit. [] I think it obviously affects his business.”
Mayor McNally did not believe the sincerity of the reasoning, but rather appeared to believe these individuals were part of a larger behind the scenes effort, and were doing their part to carry out a plan which would legalize recreational marijuana stores in the City of Grand Haven. She shared the following statement during the December 20, 2021, meeting of the Grand Haven City Council.
(4:01:20) “This issue came to the forefront in our city now, because a merchant who obtained a permit to sell medicinal marijuana, just over one year ago, who knew full well the city had decided not to permit recreational sales, made a poor business decision, because market trends in marijuana sales were changing. Now he comes before city council claiming surprise and hardship, and asking the entire community to approve and accept the sale of recreational marijuana to save his business. This merchant is well connected throughout the region in the marijuana industry, and his claim that he could not foresee this market trend rings hollow. He made a deliberate choice to plant his shop as a spearhead for a campaign advised and perhaps underwritten by the larger cannabis industry, to bring recreational sales into our community. We should not reward his actions with a fast-tracked, favorable, one-sided, permitting process.”
What is going on behind the scenes in the City of Grand Haven?