Medical marijuana facility eyes city

Council approves option for land purchase

The city of Lorain could sell land to a company that would develop a medical marijuana growing and processing facility.

Lorain City Council voted 10-0 on June 5 to approve legislation granting the business GTI LLC an option to buy 50 acres in the Colorado Avenue Industrial Park.

Council also voted 10-0 to lift the city’s moratorium on medical marijuana facilities.

The developer is affiliated with Green Thumb Industries, said Lorain attorney Anthony Giardini. The company is an Illinois-based partnership that deals with medical marijuana, according to its website.

In about an hour of discussion, the proposal sparked general support of the city administration; Council members Mary Springowski, Greg Argenti, JoAnne Moon, Angel Arroyo Jr., Joe Faga and Joshua Thornsberry.

Councilmen Brian Gates and Mitch Fallis had questions about the timing of the legislation and availability of information to Council. For example, Fallis asked if the city had a market study to determine the value of the land. Safety-Service Director Dan Given noted the city posted the land for sale for years, with no takers.

Councilman Dennis Flores had the most questions, but in the end voted for the proposal. His comments prompted an exchange with Mayor Chase Ritenauer, who argued the deal would benefit Lorain.

The Ohio Department of Commerce will award 24 state licenses for medical marijuana: 12 for “Level 1” operators with a cultivation area up to 25,000 square feet; and 12 for “Level 2” cultivators with an initial cultivation area of 3,000 square feet.

The Level 2 applications are due by June 16; the Level 1 license applications are due June 30, according to state rules.

For processors, the state is to establish rules by Sept. 8, 2017.

The Lorain plan also had general support of at least eight audience members who spoke.

In the proposal for a medical marijuana facility, the city would grant GTI Ohio an option to purchase 50 acres at the end of River Bend Drive in the Colorado Avenue Industrial Park. The company would pay $21,800 an acre, or a total of $1.09 million. For other details: • The option would run June 1 to May 31, 2019.

• The company would pay $5,000 for a nonrefundable option payment once GTI Ohio executes the option.

• GTI Ohio will enter a developer’s agreement with the city to develop at least 20 acres by Dec. 31, 2019, with new construction worth at least $10 million and creating at least 50 new full-time jobs.

• GTI Ohio will apply for a state license to become a medical marijuana large cultivator facility and processing facility.

• The company also would pay the city 2 percent of the gross revenue of the licensed cultivator facility.

• The city will support GTI Ohio exclusively in its efforts to obtain the state licenses. The city of Lorain also will not sell any city-owned land to competing operators of growth or processing facilities.

• The city also will lift its moratorium on medical marijuana licenses for cultivation, processing and dispensaries.

GTI has its offices in Chicago. There are retail centers in Nevada, Illinois, Maryland and Massachusetts, and cultivation centers in Nevada, Illinois and Massachusetts, according to its website.