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Alma looking at licensing recreational marijuana facilities - The Morning Sun

A couple of years ago city of Alma officials approved an ordinance that allowed various types of medical marijuana facilities to become licensed and operate within the city.

However, they opted out of the Michigan Regulation and Taxation Marijuana Act, which would have permitted the sale of recreational marijuana.

But things could be changing.

Last month city commissioners heard from Joey Kejbou, owner of Consume Cannabis, 528 Warwick Drive, one of three medical marijuana provisioning centers licensed to operate in Alma.

In a PowerPoint presentation he touted what the benefits would be to the city by allowing the sale of adult use marijuana.

Kejbou noted that since the state started permitting the sale of recreational marijuana there has been “a significant decline” in medical marijuana card holders, registered caregivers and sales.

In Gratiot County alone, the number of registered medical marijuana patients has fallen from 431 to 242 and the number of caregivers from 76 to 50 during the past year, he told commissioners.

Kejbou also noted that medical marijuana customers pay only the typical 6 percent sales tax while adult use customers would pay that plus a 10 percent excise tax that is funneled back to the municipality where the facility is licensed to operate.

The required security measures, licensing regulations and the products sold at medical marijuana businesses would be the same for a facility selling recreational marijuana, he added.

Permitting the adult sale of marijuana would also be a financial benefit to the city, Kejbou said.
Each licensee would be required to pay a $5,000 annual fee, the same as a medical marijuana facility.

Also, each adult use marijuana business would return about $28,000 annually to the city in the form of sales and excise taxes, Kejbou told commissioners.

In addition, facilities authorized to sell recreational marijuana would likely require hiring 15 new employees each if they were allowed to sell adult use marijuana, he noted.

Another positive aspect of licensing and regulating recreational marijuana businesses would be the decrease in the sale of untested “black market” weed sold in the city, Bejbou added.

City commissioners “have indicated an interest” in moving forward with gathering more details on a possible ordinance regarding the licensing of recreational marijauana facilities, according to City Manager Matt Schooley.

“There has been some discussion on that but no proposal has been made,” he said.

Schooley noted that determining the fate of a proposal to convert the former Warwick Living Center into a temporary home for young male refugees is still the primary focus of city commissioners.

“My guess is until that situation is decided the (recreational marijuana issue) won’t be taken up,” he said.

Schooley noted that it could be brought up as a referendum, which would allow residents to vote on whether or not to allow the sale of adult use marijuana in the city.

He expects the city commission to address the issue in the near future and any decision would likely be made based on the current ordinance regulating medical marijuana facilities.

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