Eastpointe will consider allowing recreational use marijuana businesses at an upcoming City Council meeting.
AP file photo/Richard Vogel
The Eastpointe City Council has asked City Attorney Richard Albright to draft an ordinance that would allow recreational marijuana businesses in the city.
The item is expected to come before the Council next month for a vote.
Councilwoman Margaret Podsiadlik placed the item on the March 19 agenda for discussion and said she believes allowing recreational marijuana would stimulate Eastpointe’s economy.
“I think it is a good idea to bring some recreational marijuana facilities into our community,” Podsiadlik said. “I’m supportive of the businesses that are here, but when you drive around you can see there are a lot of vacancies and that we need to bring in new businesses.”
Eastpointe awarded three medical marijuana licenses to Holistic Health Wayne at 21145 Gratiot Avenue; Moses Roses at 17375 East Eight Mile Road; and Common Citizen at 24545 Gratiot Avenue. None of those facilities have opened despite having licenses.
“There is no need for them to open with medical because they would make more money with recreational,” Podsiadlik said.
Albright offered some statistics on medical and recreational marijuana sales in Michigan: medical marijuana sales have decreased by 76.2% over the past 12 months while adult use sales have increased by 32.8%. He added that in 2023, the state saw $267.7 million in adult use sales and $3.2 million in medical marijuana sales.
The legalization of adult use marijuana was passed by Michigan voters in 2018 and Eastpointe previously opted out of allowing recreational marijuana facilities, but did allow medical establishments.
If the Eastpointe City Council wants to consider allowing recreational marijuana businesses, Albright said it would first need to approve an opt-in resolution and then create a new ordinance and procedure for the licensing selection process. The Council would need to determine if it wanted to allow more than three licenses overall or keep it at three and give preferential consideration to the three medical businesses for recreational licensing.
Curley said he would be in favor of offering the three companies with medical licenses the opportunity to have recreational ones.
“I think we should just stick with three and award recreational licenses to those that have already gotten medical licenses,” said Curley. “No bidding, just award them to the existing licensees.”
Albright said if any of those businesses did not want a recreational license, a selection process would be put into place.
“My guess is that all three of them are going to want the opportunity though,” said Albright.
Councilman Rob Baker who has consistently voted against allowing marijuana businesses in Eastpointe cautioned his counterparts about simply awarding adult use licenses to businesses that already have medical licenses in the city and not having an open application process.
“If we do that, you might as well put a fan in front of the window and watch your money blow right out because there will be a number of people coming forward saying they did not have a chance to apply for a recreational license,” Baker said. “We have already been sued, so I would just say to proceed with caution.”
Podsiadlik said litigation just comes with the territory of marijuana licensing.
“That is the nature of it because people will sue over anything,” said Podsiadlik. “Lawsuits are inevitable in this position.”
A proposed recreational marijuana licensing procedure is expected to be on the April 2 City Council agenda. City Council meets at 7 p.m. at Eastpointe City Hall.