Niles City Council approves ordinances to allow adult-use marijuana businesses

Published 8:35 am Wednesday, October 9, 2019

NILES — On Monday evening, Niles City Councilmember Gretchen Bertschy put on what she called her “Catholic principal” voice, looked into the eyes of the marijuana business entrepreneurs in attendance of the special council meeting and said these words, her “p’s” popping in the microphone:

“The same individuals that worked so hard to get this passed and benefit from the industry are going to keep the industry clean in Niles,” she said.  “Not ‘National Standard Wayne Street’-clean, ‘Moving forward, our future and our reputation depends on it’-clean.”

Bertschy was referring to an ordinance and an ordinance amendment that would allow recreation, or adult-use, marijuana businesses to operate and be regulated in Niles city limits.

Within 20 minutes of Bertschy’s speech, the council approved the ordinance and amendment 6-1 each.

Councilmembers Bertschy, Travis Timm, Charlie McAfee, William Weimer, John DiCostanzo and Jessica Nelson approved the ordinances. Councilmember Daniel VandenHeede was opposed. Councilmember Georgia Boggs, a longtime opposer of the ordinances, was absent.

In about three weeks, entrepreneurs and marijuana businesses can seek pre-approval for an adult-use license from the state. Then, they can seek approval from Niles’ planning commission and council for permits and other regulatory requirements. If approval is obtained, Michigan may grant the businesses their state licenses, and the businesses can operate in city limits.

The businesses will have to comply with numerous other safety and compliance measures, as both ordinances were created to regulate.

The decision is a reversal of a November 2018 decision to not allow recreational marijuana businesses in city limits. The 5-3 decision was made shortly after Michigan voters approved marijuana to be legally consumed by those 21 and older.

Niles voted almost 3 to 1 to make recreational marijuana legal in 2018.

It was a point DiCostanzo made clear prior to the votes. He moved both ordinances, and Nelson seconded both.

“I believe we have more to benefit by opting in and making it more commercially available, more affordable and hopefully discouraging the home growers, and that material, which I think would be more likely to get out on the street in the black market,” he said.

DiCostanzo was a longtime supporter of an ordinance that would properly regulate adult-use marijuana businesses in Niles. He often stood opposed, as he did Monday, to VandenHeede,  who. said he supported medical and recreational marijuana but worried the council was moving too fast and not considering all regulatory ideas.

McAfee offered an alternative approach.

“If they really want it, they’re going to get it, legal or illegal,” she said about users. “I would feel better to have it legally… rather than the back doorway.”

Bertschy and Nelson often posed regulatory questions over the months the council considered ordinance drafts and medical marijuana business permits.

Timm and Weimer were often silent.

The following business types will be permitted in the city, some with limits to the number of licenses available:

• Growers are businesses that cultivate marijuana plants. Growers can have one license that allows it to grow up to 2,000 plants. There are no limits to the number of licenses issued by the city.

• Excess growers can stack licenses to grow more plants at once. There are no limits to the number of licenses issued by the city, but they are limited only to vendors at 901 E. Wayne St., the Niles Industrial Park and north of Lake St.

• Processing centers are businesses that turn marijuana plants into consumable marijuana products. There are no limits to the number of licenses issued by the city.

• Provisioning centers are businesses that sell marijuana products to consumers. Up to four can exist in city limits, including those issued through the city’s medical marijuana ordinance.

• Microbusinesses are places where owners could cultivate up to 150 plants, then process, package and sell them directly to consumers. The business could also sell its products to other establishments. Up to four microbusinesses can exist in city limits.

• Secure transporters are businesses that store and transport marijuana and monies associated with it. There are no limits to the number of licenses issued by the city.

• Safety compliance laboratories are accredited businesses that test and analyze marijuana products, checking for issues such as pesticides, chemicals, other contaminants and high levels of THC. There are no limits to the number of licenses issued by the city.

• Marijuana event organizers are businesses that host public events where marijuana can be purchased and consumed similar to a beer tent at a festival. There are no limits to the number of licenses issued by the city, including temporary licenses.

• Designated consumption centers are businesses where people can pay to consume marijuana products. Three centers may exist within city limits.

Each facility has its own restrictive zoning requirements, and some may need special land use permits approved by the planning commission and city council.

No more than six structures in the Niles Industrial Park can house marijuana businesses.

According to city administrator Ric Huff, both ordinances should be in effect by 20 days after the council’s Monday vote.