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Date: 4/4/2022
MONSON – Cannabis company Holistic Industries’ host community agreement was up for debate at the Monson Select Board’s March 22 meeting.
Holistic Industries, located at 96 Palmer Rd., is a privately owned and operated cannabis company that has conducted business in Monson for several years.
Dr. Richard Smith, Select Board chair, explained that Josh Genderson, CEO of Holistic, sent the board a letter a few months back, requesting that they revisit their host agreement. Currently, Holistic pays 3 percent of gross sales to the town annually, which is the maximum amount required under state law. Genderson expressed they would like to pay 1 percent.
Genderson, along with Executive Director of Liberty Cannabis Cares - Holistic’s Corporate Responsibility Team, James Kahn, came before the board for a discussion on the matter.
“When we came to Monson, which has been an incredible partnership – and one that I don’t want to underplay in any way, shape or form – and negotiated a community host agreement, it was sort of the ‘wild west’ when searching for places to go and we really felt welcomed,” Genderson said.
Over time, Genderson said between tax provisions, start-up costs and operating costs, they began to learn what their entity margins were. As mentioned in his letter, Genderson said, “The dollar amounts started to put us in the red.” He said they are trying to propose a number that is “fair” for everyone, while still giving the town what it needs.
Overall, in 2021, Genderson said their annual revenue was down slightly due to COVID-19 and market compression. Holistic has paid their fees to the town for 2020, which was roughly $534,000. Due to the impacts of the pandemic, they have not yet paid their 2021 fees and are not required to until April.
Regardless of the board’s decision, Genderson said the letter was “an attempt in good faith” to have a conversation.
Kahn shared a few of Holistic’s efforts in giving back to Monson. A few years ago, he was introduced to Lori Stacy, executive director of the Senior Center, and he asked her if she or the town were faced with any concerns. Stacy informed him that they struggled with transportation, and she only had “limited funds” along with other challenges, such as finding a driver. As a result, Kahn provided the Senior Center with $15,000 and found someone to drive their vehicle.
Another example of their assistance, he shared, is when COVID-19 struck, Stacy was worried about isolation amongst seniors and asked Kahn if they could provide them with tablets to stay connected. Holistic supplied $10,000 for that request to be filled.
The cannabis company also wrote an $8,000 check to the library to update some of their outdated furniture.
Kahn went on to say that they have a lot of partnerships and upcoming events that they are proud to support. “We are proud to call this place home,” he said.
Genderson noted that they have also spoken with Monson’s police and fire chiefs to talk about funding for police cars, faster emergency fire services and more. “Our goal isn’t to pull out and offer nothing,” but rather to stay in town and to get ahead of the legislation that will be coming, he said.
The initial contract that was agreed and signed upon in 2019 is a five-year contract. Holistic is looking for the decrease to start with their 2021 fees and continue to stay with the decrease until their contract is up in 2024.
As Holistic is a private funded company, Genderson said, “These host community agreements are hurting smaller companies.”
Mary Hull, town clerk, said Holistic should stick with the 2019 contract, paying 3 percent until 2024. She believes the board and company should “honor” the initial agreement.
Patricia Oney, Select Board vice chair, agreed that Holistic should wait until the contract is up. “At this point in time, I’m not leaning in the direction to make any adjustment to the 3 percent,” Oney said.
Hull made a motion to keep the contract as is until 2024. She said this does not prevent Holistic from coming before the board and trying again in two years when the contract is up. Hull and Oney voted in favor, Smith was opposed. The motion passed.
Schools FY23 Budget Overview
Superintendent Cheryl Clarke and Director of Business and Operations Leah Zippin provided an overview of the Monson Schools Fiscal Year 23 (FY23) budget.
Clarke said the objectives are to retain and expand the programs that they currently have in place. “In light of the continuing challenges related to COVID-19, for our families, our students and staff, it’s not over because the effects, the trauma, the social-emotional, academic needs are still there and will be for the foreseeable future.” Clarke said this has both informed and assisted them in creating the budget.
She explained that the school departments budget for the year is $10,768,773.
Some of the highlights in the budget, as mentioned by Clarke, is the increase in the preschool half day program to four hours, additional support in the classrooms, social-emotional support and seven counselors, to name a few.
With the Elementary and Secondary School Emergency Relief (ESSER) funds that they received from the pandemic, Clarke said the money has been used to add instructional aids at the Early Childhood Center, a counselor, along with math and reading interventionists, which she said is “critical.”