Since city council members voted 7 to 1 in March to support an ordinance that would allow medical marijuana facilities to operate in Niles, city leaders have been tasked with creating regulations that will establish guidelines for potential businesses, while assuring residents welfare.

On Monday night, council members took another step toward creating these guideline during the presentation of a draft proposal opt-in ordinance to authorize medical marijuana facilities in the city.

The presentation was led by Community Development Director Sanya Vitale, who has spent weeks working with the planning commission, City Administrator Ric Huff and the City Attorney Robert Landgraf to create a concrete draft.

About 20 people present in the audience at the meeting could view the draft via PowerPoint, while council members examined a hard copy. A draft zoning ordinance was also included for evaluation.

Given that this is the first proposed draft, Vitale asked council members to read through the information carefully and write down any questions, concerns or information that they think should be included. 

The draft outlined purpose and intent of the ordinance, definitions, licensing, specific facility requirements, general requirements and certification.

Among the highlights discussed Monday night, the draft proposed that the city allow all five types of licenses. This would include growers, processors, secure transport, provisioning centers and safety compliance facilities. The draft also proposed granting an unlimited number of all types of licenses, except provisioning centers, otherwise known as dispensaries.

Vitale advised the city allow two dispensaries. The opt-in draft also stated that no more than two facilities could house medical marijuana licenses of any type in the Industrial Park area.

Niles Mayor Nick Shelton asked how this number had been reached.

With only six properties currently open in the Industrial Park area and other industrial businesses interested in the property, Vitale said it was necessary to help business diversity.

“Because of the fact that there is very few properties available at this point,” Vitale said, “We wanted to leave the market available.”

Vitale also outlined the process that an interested business would have to take, before being permitted to set up shop in Niles. First, businesses would need to obtain a special land use approval from the planning commission. Next, a potential business would need to obtain a provisional medical marijuana facility approval certificate from the city clerk, then a license from the state would need to be approved and finally, an approval license from the city.

The process could also include paying an initial licensing fee of $2,500 and a final fee of up to $2,500, after state approval is granted. Additionally, a public hearing, where neighbors in the proposed location could voice their concerns and opinions would take place. An annual nonrefundable fee to defray administrative and enforcement costs in the amount of $5,000 would also be required.

Businesses could not apply until on or after Dec. 15, if a draft is approved.

For zoning, Vitale said the city was working with a planning consultant called Williams & Works, based in Grand Rapids. The proposed zoning ordinance would allow all licensed types in primarily industrial parcels, that are east of Eighth Street and north of Wayne Streets over to Terminal.

This includes industrial park, but not the airport property. Businesses applying for downtown spots, might run into some issues, given that medical marijuana facilities cannot be 1,000 feet from a library or school. Facilities would also not be allowed on park property.

City Council Member Gretchen Bertschy, who represents the 1st Ward, asked what would happen if facilities do not comply with the fee guidelines created.

“If they don’t submit fees as outlined,” Vitale said. “It [the draft] states that the city’s police chief could go down and shut down the business and they will have to cease operation for the day.”

The goal is to have a first reading of the draft presented at the next city council meeting at 6 p.m. on Oct. 23 at the Niles Fire Station Complex building, 1345 E. Main St.