Springfield reaches an agreement with a medical marijuana dispensary

Hampden Care Facility gave up its exclusivity demand

medical marijuana

SPRINGFIELD, Mass. (WWLP) – Springfield Mayor Domenic Sarno has reached a new agreement with a medical marijuana dispensary that plans to open in the city.

Hampden Care Facility originally wanted to be Springfield’s sole dispensary, but the City Council rejected that condition in August by an 8-3 vote.

City Councilor Justin Hurst told 22News the proposed 5-year exclusivity deal wasn’t reasonable. He said, “One, we think the demand is much higher. The last thing we want to see is lines out the door for a medical marijuana dispensary facility. So from a public safety stand point, I personally felt there might be a need for more than one.”

Originally, the dispensary was offering the city 2% of its gross revenue in 2017, and then the percentage would increase to 6% in 2025.

Under the new agreement, Hampden Care will pay 1.5% of its gross revenue sales in 2018, pay the $50,000 annually to the Springfield Police Department, while the city’s payment would rise to $100,000 in 2019.


Continuing Coverage: Marijuana News


Below is a state from Mayor Sarno regarding the medical marijuana dispensary:

My administration has undertaken rigorous efforts to find the best developer to provide these services to people in need. We vetted nine applicants and chose the best one from the stand-point of public health, safety and economic development.

Next steps are that we will continue to work with the chosen developer to satisfy the conditions of their special permit with relation to the host agreement. My goal continues to be getting those, who are suffering, the medical relief they need ASAP.

I remain hopeful that the City Council renders a decision to help those individuals and families in need ASAP. Also, if another dispensary is proven to be needed, we have the proper mechanisms in the agreement to address such concerns.

According to the Mayor’s Office, Hampden Care must make the following Host Community Donations to the City as follows:

 

  • Calendar Year 2016 – 2017 – As Hampden Care will not be fully operational in 2016 or 2017 but, rather, will be involved in obtaining necessary licenses and permits and then completing the build-out; there will be nothing paid to the City of Springfield.
  • Calendar Year 2018 – Hampden Care shall donate to the City $50,000 in two (2) installments, the first payment of $25,000 due on 1/2/2018 and the second payment of $25,000 due 180 days thereafter, as well as $50,000 paid directly to the Springfield Police Department, due 12/31/2018. Additionally Hampden Care shall pay to the City 1.5% of gross sales revenue during the Calendar Year 2018, to be paid within 90 days of 12/31/2018.
  • Calendar Year 2019 – On or before February 1, 2019, Hampden Care shall donate to the City the sum of $100,000 in two (2) installments, the first payment of $50,000 due on 1/2/2019 and the second payment due on or before 12/31/2019, as well as $50,000 paid directly to the Springfield Police Department on or before 12/31/2019.  Additionally Hampden Care will pay 2% of the gross sales revenue during the Calendar Year 2019, to be paid within 90 days of 12/31/2019.
  • Calendar Year 2020 and succeeding years beginning on February 1, 2020, Hampden Care shall donate to the City the sum of $150,000 in two (2) installments, the first payment of $75,000 due on January 2nd of each year and the second payment due on or before December 31st of each successive year as well as $50,000 paid directly to the Springfield Police Department.  Additionally Hampden Care shall pay to the City 2.5% of the gross sales revenue for each year of operation to be paid on a quarterly basis within sixty (60) days from the end of each quarter.”

 

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