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Date: 3/30/2022
SPRINGFIELD – The City Council extensively mulled over the city’s Host Community Agreement (HCA) process concerning cannabis dispensaries over the last month, with the ongoing conversation caused by controversy surrounding an improperly scored applicant not receiving an HCA. After discussing the matter in multiple meetings, the City Council approved several dispensary special permits during their March 21 meeting.
Before the council discussed the special permits, the group considered tabling an item again after a motion from Ward 3 Councilor Melvin Edwards. The councilor explained that it’s beneficial to delay the items with concerns around the applicant’s Approval Not Required (ANR) plans so the city can receive additional legal opinions on the matter. ANR plans reflect adjustments made to an application after its initial submission, which would impact applicant Page Cultivate on 299 Page Blvd.
“We should have a legal opinion, I just want to make sure we are on legal ground,” said Edwards, who said the council was sued in the past by a dispensary operation in Springfield. Edwards invited new City Solicitor John Payne Jr. to discuss the matter, with Payne sharing that a legal deep dive is needed to create a definitive conclusion.
“Given the fact that this seems to be something that popped up in respect to several different applications … I would suggest that this is a concern that the council might ask for a formal opinion so that the law department can draft a formal opinion,” said Payne.
The City Council ultimately tabled the Page Cultivate item in an 8-3 vote.
Enlite continues to draw debate
After approving dispensary and cultivation special permits for Diem Springfield at the Eastfield Mall, the special permit request for Enlite drew additional debate. Controversy surrounding the topic began when an HCA scoring error allowed the Enlite, the seventh ranked applicant, to receive one of the city’s six HCA agreements.
The fallout of the error caused Origins LLC, the fifth ranked applicant, to not receive an HCA. During the Enlite item, City Councilor At-Large Justin Hurst made a motion to give Origins LLC Business Development Director James Rushing the floor to articulate the company’s perspective.
As the author of the company’s retail application, Rushing discussed the negative impacts facing Origins in the aftermath of the tallying error, including losing out on a lease agreement for the 1391 Main St. location that Rushing considered “the perfect location” due to its access to parking and “beautiful” interior.
“We felt that we truly understood the values of the city and its people, and we felt our business model was exactly in line with the RFP [Request for Proposal] … We can confidently say that an error had occurred, and if the city wants to make good on their commitment to an honest selection process, they need to take this opportunity to ensure that Origins receives an HCA and a special use permit for cannabis in Springfield,” said Rushing.
The business development director also stressed that the company is considering different legal avenues to address the lack of HCA. “Our legal team is prepared to engage in all options to ensure that our story is heard and considered moving forward,” said Rushing. While Origins continues to look for new locations options, Rushing argued that the Enlite special permit should be tabled as Origins advocates to Mayor Domenic Sarno, who makes final decisions about HCA applicants.
Rushing’s proposition drew mixed perspectives from the City Council. City Councilor At-Large Tracye Whitfield said that the responsibility to correct the mistake falls on the mayor.
“We don’t select any of the retail locations, that is ultimately up to the mayor. While the mayor said that he goes by the scoring criteria that we provide him, I don’t see that he has stepped forward to do the right thing by Origins,” said Whitfield. The councilor argued to table the item as Enlite could potentially not receive the required votes to pass their special permit under the current circumstances.
Hurst stressed that the council can correct the city’s mistake by tabling the Enlite item. “I think we have an opportunity to do what is right. We have an opportunity to ensure that the mayor awards Mr. Rushing and his company an HCA before we award individuals a special permit who in any other circumstance would not have received an HCA or a special permit,” said Hurst.
City Councilor At-Large Jesse Lederman advocated against tabling Enlite, stating it is not fair to punish them for a situation that is not under their control “I don’t think we can hold a special permit hostage with a condition that the administration grant a different HCA invitation to another entity…I don’t think we’ll be on a strong legal footing by doing that,” said Lederman.
Ultimately, the City Council voted 6-5 in favor of tabling the Enlite item, but the motion did not pass due to not securing the necessary seven-vote majority. Shortly after, the City Council approved Enlite’s special permit request in a unanimous vote.
The City Council also discussed special permits for a marijuana delivery operation Tree N’Brick and a marijuana retail space from Lemonade Springfield LLC, but ultimately did not vote on either item due to both making their first appearance in front of the council.