What to Know About Royal Oak’s Adult-Use Cannabis Ordinance

In a 5-2 vote in July, The Royal Oak City Commission approved an ordinance to opt-in to adult-use cannabis facilities licensing.

The licensing ordinance took effect on Aug. 15th, 2020, following a year of public discussion on the subject. As the cannabis industry continues to expand in Michigan, this is an exciting municipal opt-in.

While the application itself is not yet available, we can anticipate what the process may be like based upon the licensing and zoning ordinances.

What Licenses Are Available?

The Royal Oak Adult-Use Marijuana Facility Licensing Application is highly competitive, with a limited number of municipal licenses available. They are designated as follows:

• Two (2) Adult-Use Retail Licenses in the General Business Zone
• Two (2) Microbusinesses in the General Business Zone
• One (1) of each of the other cannabis establishment license types
  – Class A Grow, Class B Grow, Class C grow, Processor, Safety Compliance Facility, Secure Transporter

What Are Some Of The Application Requirements?

The application requirements include, but are not limited to:

• Name, address, and contact information of the applicant and proposed facility
• Prequalification status letter from Michigan’s Marijuana Regulatory Agency (MRA)
• Growers, processors or microbusinesses MUST show that the electric system has the availability to deliver the estimated peak capacity and energy of the facility
• Proof of valid tenancy or ownership of the location of the proposed facility
• Applicant entity MUST provide copies of organizing documents, proof of registration with the State of Michigan and a certificate of good standing
• All applicants of the proposed facility MUST provide a copy of state issued identification
• Valid sales tax license for the business
• Non-refundable application document review fee
• Comprehensive business operations plan detailing the proposed operations including:
  • Description of facility and anticipated number of employees
  • Security plan meeting the criteria outlined in Section 4355 of the licensing ordinance
  • Description of all products to be sold
  • List of Material Safety Data Sheets for all nutrients, pesticides and other chemicals for proposed use
  • Report identifying all hazardous materials and processes
  • Obtain a wastewater discharge permit
  • Description of all equipment and methods that will be employed to stop any impact on adjacent uses
  • Plan for disposal of cannabis and related byproducts
• Applicants must disclose other regulatory licenses and if they have been subject to denial, suspension, revocation or non-renewal
• Site Plan prepared in accordance with Section 770-12
• Estimate of water usage

What Is The Anticipated Submission and Review Process?

Applications, once available, will be held until a window is established to select applications to fill an available license slot.

The application will be considered through the competitive process described in the licensing ordinance. Once the application fee is paid by the applicant, the City Clerk will refer a copy to the designated staff of the Police Department, the Fire Department, the Community Development Department, and any other applicable departments for review and approval.

After the City Departments have reviewed, but prior to approval of Special Land Use Permit and Site Plan, the applicant will be notified of any deficiencies. The noted deficiencies must be corrected within the thirty (30) day timeframe, or the application will be considered incomplete and denied.

Once the deficiencies are corrected, the applicant’s Special Land Use Permit and Site Plan will be considered by the City Planning Commission. All inspections, review and processing of the application shall be completed within ninety (90) days, uncles extended upon written notice by the City for good cause.

How Can I Obtain a Royal Oak Marijuana Facility License?

Because of the limited licensing and favorable location, the Royal Oak Marijuana Facilities Licensing application will be highly competitive. The licensing ordinance outlines the competitive process through which applications will be considered. The applicants and applications will be ranked in the order of which is best suited to operate.

The competitive criteria includes, but is not limited to:

• If plans submitted illustrate likely success and harmony with surrounding properties
• History of non-compliance or default on any tax or fee
• Royal Oak business experience within the past two (2) years
• Criminal history as specified under the Michigan Regulation and Taxation of Marihuana Act (MRTMA)
• Commercial license history
• If the applicant has ever filed bankruptcy or been involved in a formal process to adjust, defer, suspend or otherwise workout a payment of a debt within the last seven (7) years
• Planned community outreach
• Attention to employee-employer factors to promote a successful workplace
• Steps taken to include equity, diversity and inclusion in their operations
• Energy efficiency

The Takeaway

At present, roughly 1,400 Michigan communities have opted out of adult-use licensing. If your municipality of choice opts-in or is considering an ordinance, it is critical to prepare the most accurate and competitive municipal facilities license application.

When applying for a cannabis business license, compliance is one of the most important aspects to keeping your business afloat. Our team of experienced cannabis attorneys can ensure success in maintaining regulatory compliance.