By DEBRA HAIGHT
BCR Correspondent
BUCHANAN – As 2021 comes to an end, Buchanan city leaders are once again looking to expand marijuana business opportunities as they also find ways to incentivize economic development overall.
On the marijuana side, City Commissioners voted recently to start the process of expanding the number of grow and processing permits for both medical and adult use marijuana. The number allowed will be increased by five in each category over the previous level.
That means there will be five new permits available for medical marijuana grow, medical marijuana processing, adult use marijuana grow and adult use marijuana processing businesses. The Dec. 13 action was an action and first reading, the final vote is expected to come later this month at the commission’s Dec. 28 meeting.
City Manager Heather Grace noted that this does not mean the city is planning to increase the number of retail
marijuana businesses in the city beyond the current level. She said that most of the marijuana businesses already permitted in the city are up and running at the current time.
Commissioners also had a first reading of an amendment to the city’s ordinance on temporary marijuana events at their meeting on Dec. 13. The amendment if approved will allow for such events to include smoking and vaping. The ordinance currently does not all for those two activities at temporary marijuana events.
Grace reported that it’s unclear what the marijuana revenue the city will get from the state in 2022. In 2021, the city received just over $84,000 from the state. That round of state marijuana revenue distribution also saw Berrien County getting $140,000 and the city of Niles $56.000.
She said she’s heard from governmental leaders in other municipalities that the state marijuana revenue this coming year could be about half of what was received this year. She noted however that the state has not confirmed that will happen.
As for the expansion of marijuana grow and processing businesses, Mayor Sean Denison said he and other city leaders are well aware of people’s opposition to new retail establishments. However, he said the city continues to get calls from investors looking for locations where they can start a marijuana business and create jobs.
He noted that such a situation is not something city leaders have seen in a long time. He said he feels obligated to try and create as many jobs as possible. He said the expansion of marijuana grow and processing permits is being considered now because there are almost none left under the current ordinance.
Marijuana remains a contentious issue not only in Buchanan but around the region. Marijuana businesses-either medical or adult use-have been approved and in most cases begun operating in communities throughout the county including Benton Harbor, Eau Claire, Galien, Niles and Three Oaks besides Buchanan.
The village of Three Oaks awarded permits to two businesses earlier this fall. Galien Township was one of the first to approve medical marijuana establishments and may soon be considering allowing adult use marijuana businesses. In Niles, the debate has started once again as the city council is looking at allowing adult use marijuana businesses in the downtown.
As for overall economic development efforts, Buchanan Community Development Director Richard Murphy has outlined a number of efforts to encourage development in recent months with grants and loans.
For example, he asked for and received approval of two new programs at the Dec. 13 commission meeting. He said the two programs are additions to the city’s “Developer’s Toolkit” and will be funded by some of the American Rescue Plan Act funds the city is getting.
The first is a technical assistance program which would allow developers and business owners to apply for assistance in engaging or paying for consultants to help them get federal and state tax credits. He said the goal is to remove obstacles for the redevelopment of properties and to give investors an additional funding option to help them.
As Murphy reported to the commission, $7,500 has been set aside so far for the program in 2022 but that amount could be increased if necessary. He noted that the city might decide to directly engage the services of consultants when the project is believed to be of importance to the community as a whole.
The other program approved for addition to the developer’s toolkit is the floodplain assistance program. That program will allow developers and business owners apply for financial assistance to deal with floodplain issues that could be a hindrance to redevelopment efforts.
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