Two years after the city opted-in to recreational marijuana, Detroit's City Council has finally approved a new adult-use cannabis ordinance, bringing recreational cannabis to the state's largest city.
The City Council voted 8-1 on the ordinance Tuesday following two hours of discussion. The Council was initially expected to hold the vote last month but held another public hearing Tuesday after the city's Law Department determined that proposed amendments from the council were substantial enough to merit a second hearing.
A federal judge ruled last summer that the city's first ordinance (approved in 2020) was "likely unconstitutional" for providing too much preference to "Legacy Detroiters."
Mayor Pro Tem James Tate smiled with joy after the vote, saying it has been "blood, sweat and tears," to get to the finish line and thanked his fellow representatives, who have worked together over the last two years seeking equitable opportunities for longtime Detroiters to participate in an industry that's estimated to yield $3 billion in annual state sales.
City Council President Mary Sheffield said she supported the ordinance because voters overwhelmingly wanted the legalization of recreational marijuana which will "create generational wealth, create revenue for traders, the opportunity for our residents to purchase and consume safe and regulated cannabis within our city limits," she said, thanking Tate for his work over the last two years.
How Licenses Will Be Awarded
The amendments provide options for provisional licenses, adding social equity and non-equity tracks and creating rounds of distributing an increased total of 100 licenses. The licenses will be awarded over three phases which will be spaced out three months apart.
In the first round, there will be 20 licenses available for each track, social equity and non-equity. There will not be an option for provisional licenses in the first round.
In the second round, there will be 15 licenses available for each track and will add provisional options, which require applicants to obtain property zoning within 18 months of being certified before receiving their license from the city.
The highest-scoring applicants out of a 100-point rubric will be put into a lottery for the first licenses.
It judges their business plan, site control and their due diligence to pay taxes. It requires a "good neighbor" plan — that businesses show how they are committed to hiring Detroiters, purchasing from local businesses, have a pricing commitment and plan to invest in the surrounding neighborhood to leave a positive impact.
Separately, applicants have the opportunity to score up to 27 additional points by giving away portions of the business to a longtime Detroiter for social-equity certification.
Tate said they are in the process of reducing the zoning restriction from 1,000 feet to 750 feet and potentially increasing the funding from $500,000 to $1 million; should it be successful.
[The Detroit News]
Interested in Obtaining a License in Detroit?
As Michigan's largest city prepares to begin accepting adult-use applications, hopeful cannabis operators in Detroit should start the licensing process as soon as possible to maximize their chances of winning a license.
If you are interested in learning more about Detroit's recreational ordinance and the licensing process, please contact our team of expert consultants to schedule a free consultation.