As of today, marijuana companies can apply to set up shop in the largest city in western Massachusetts.
Five months after retail sales of recreational marijuana began in Massachusetts and more than two years after the state’s voters legalized marijuana for adult use, the city of Springfield Monday began accepting formal proposals from prospective cannabis businesses.
To vet the applications, Springfield Mayor Domenic Sarno has hired a consultant and appointed a committee made up of representatives from the city’s public safety agencies, health department, economic development, and inspectional services.
" There are going to be guidelines that need and have to be followed," said Sarno. "Out of respect to the neighborhoods, the residents and business community of the city of Springfield."
Springfield is expected to be a major market for cannabis retailers because the suburbs adjoining the city have all enacted moratoriums on marijuana businesses.
So far, informal proposals have been made public for 12 locations for recreational marijuana businesses in Springfield including a former Macy’s store in the Eastfield Mall, an empty downtown bank building, and a storefront in a commercial block called Gasoline Alley, so-named because of its proximity to several large fuel storage tanks.
The city has capped at 15 the number of marijuana stores, and restricted the locations to 58 streets.
According to a timetable released by the mayor’s office, the deadline for applications is May 20th. The city expects to announce on June 17th which of the proposals have been accepted to move to the next step: negotiation of a host community agreement.
Marijuana stores are also required to obtain a special permit from the Springfield City Council and will need to pass inspection by the state Cannabis Control Commission before opening their doors to the public.
Springfield City Council President Justin Hurst said the council wants to set aside 40 percent of the marijuana store permits for city residents and so-called “economic empowerment applicants.”
" We think it is important," explained Hurst. People who fit under the state's definition for economic empowerment status are those were disproportionately impacted when marijuana was illegal.
Because of the uncertainly over when marijuana stores might open in Springfield given the lengthy application and permitting process, T.J. Plante, the city’s chief finance officer, said he will not include any estimated revenue from marijuana sales in the city budget for the fiscal year that begins this July 1st.
" It depends on how large these facilities are and how well they do, so I would be hesitant to put any real numbers out there," said Plante.
Springfield will collect a 3 percent tax on each retail marijuana sale and a 3 percent annual levy on the gross revenue from each store.
The city plans to put a third of the marijuana sales tax money it collects into a fund to pay for projects and programs in neighborhoods that were adversely impacted during the decades of marijuana prohibition.
