Springfield – Mayor Domenic J. Sarno has reached a new agreement with a company planning to open a medical marijuana dispensary in East Springfield, removing a prior clause that would have given the business the exclusive license in the city.
In allowing more sites, however, the company, Hampden Care Facility Inc. and the Sarno administration agreed to lower the annual percentage payments to the city coming from marijuana revenues.
The City Council will consider approval of the new agreement Monday night, after rejecting a prior agreement in August by an 8-3 vote. In the August vote, councilors objected to a proposed five-year exclusivity clause and other clauses. Monday’s meeting begins at 7 p.m. at City Hall.
Under the new agreement, Hampden Care Facility would begin paying the city 1.5 percent of its gross sales revenue in 2018, and will also pay $50,000 directly to the city and $50,000 directly to the Police Department that year.
The annual payment will rise to 2 percent in 2019, and to 2.5 percent in 2020 and subsequent years. The annual payment to the Police Department will remain at $50,000 annually, while the separate payment to the city will rise to $100,000 in 2019 and $150,000 in all subsequent years.
In August, Hampden Care was offering the city 2 percent of its gross revenue in 2017. That amount would have risen to 6 percent by 2025.
The company had stated that its prior offer of payments was based in part on the stability provided by the exclusivity clause, and thus changing that agreement would also necessitate changes in the amount of the annual payments to the city.
The annual payments offered in the August proposal called for a 3 percent payment in 2018, rising to 4 percent in 2019 to 2021, 5 percent in 2022 to 2024, and 6 percent in all subsequent years.
The August agreement also included $50,000 payments to the Police Department, but did not include the new separate annual payments to the city ranging from $50,000 to $150,000.
In the new agreement, Hampden Care continues its agreement to hire approximately 15 employees, and to make its “best efforts” to hire Springfield residents.
Sarno and his advisers had received nine applications for the medical marijuana dispensary, choosing Hampden Care Facility as the top-ranked applicant.
There was initially a negotiated proposal for Hampden Care to receive a 10-year exclusive agreement, but the sides agreed to the five-year length when councilors raised strong objections. Some councilors said the 10-year agreement amounted to a monopoly and said more marijuana facilities could be needed in Springfield.
Sarno and his advisers said there were ways to reopen negotiations if more dispensaries were needed, but subsequent negotiations led to the removal of the clause for an exclusive contract.
“As it is possible that the city of Springfield will reach agreements with other vendors to operate medical marijuana facilities, the parties agree that fairness and uniformity with respect to the selection process and host agreements should govern all such facilities,” the proposed agreement says.
Any added vendors “shall follow the exact same practice and procedures that Hampden Care has been required to pursue,” the agreement states.
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Springfield Proposes New Deal For Medical Marijuana Dispensary, Leaves Door Open For More Sites
Author: Peter Goonan
Contact: MassLive
Photo Credit: The Republican
Website: MassLive