Owners of Proposed Cannabis Dispensary in Essex Begin Formal Process to License

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On Monday, a public hearing hosted by BB Botancials, LLC, the would-be buyer of a property on Route 133 in Essex, took place to clear the air on their plans to sell legal recreational marijuana and secure an operational license from the state. 

The hearing is a requirement for anyone looking to secure a license. Perhaps signaling a desire to work in unison with the town of Essex, BB Botanicals asked to conduct the public community outreach meeting — which is what the state’s Cannabis Control Commission (CCC) calls the required meeting — at the Essex Town Hall.  The third-floor room attracted a crowd of residents concerned about the impact a recreational cannabis dispensary would have on traffic and safety in Essex.

Essex is not alone in this process.  There are 13 approved licenses in Essex County, according to the CCC website.  

Now, in line with Massachusetts state guidelines, BB Botanicals has up to six months to complete a “host community agreement” with the town of Essex.  That agreement was set up by the CCC to establish operating rules that address “reasonably related” impact areas and help integrate a newly licensed dispensary into its community.  Mostly the agreement is a financial one — the state allows towns to collect an additional three percent of sales on top of the three percent local tax on sales — but it can be more.  For instance, Essex could require the creation of a standing community impact board as a way of receiving public input on the retail operation. Or it could set up specific guidelines governing traffic management. 

Regardless of what happens, the Essex Board of Health isn’t waiting and will move to create its own set of local cannabis commerce regulations, much the way the town has its own regulations for overseeing tobacco and liquor retailers.  The idea is to mimic state regulations, including no cannabis product sales within 500 feet of a school, an annual schedule of inspections, and an annual fee to operate. But perhaps because the cannabis commerce category is new to everyone, Erin Kirchner of the BOH said the board may opt for additional regulations (such as going above the two inspections per year schedule).  The annual permit fee, she said, will likely be in line with tobacco or liquor retailers, which is $100.

With dispensaries, particularly those selling recreational (now dubbed “adult-only”) cannabis, traffic and congestion is a challenge since shops are experiencing lines of customers waiting to purchase.  This particular location at 166-168 Eastern Avenue (a.k.a. Route 133), however, seems ideal to mitigate traffic-related concerns. The location is 1.8 miles from Route 128 at the Route 133/Eastern Avenue exit, and it’s just several hundred feet over the town line into Essex from Gloucester.  The neighborhood is not densely populated.

State voters legalized recreational marijuana in 2016, laying the groundwork for what’s happening now in Essex.  And similar processes are occurring in nearby cities and towns. According to the CCC’s database, Gloucester has two recreational marijuana retail applications, from HVV Massachusetts, Inc. and Hooligans Enterprises, LLC.  In Salem, Alternative Therapies Group (the first licensed medical dispensary in Massachusetts) operates a medical and recreational cannabis dispensary (as well as two others in the area, Amesbury and Salisbury) and there are currently applications active from two other operators with the state.

As of now, Essex has zero applications filed formally with the state.  That is because BB Botanicals’ application will not be considered active (or “real”) until it completes its host community agreement with the Essex Board of Selectmen.  Essex Town Administrator Brendan Zubricki said on Tuesday that the BOS has not yet been approached with a proposal. And, representatives from BB Botanicals acknowledged Monday, the “purchase and sale” agreement signed with the property owner at 166-168 Eastern Avenue to secure the property is contingent upon successfully securing a license to operate.  As a result, it’s clear the dominos in this process must fall the right way in exactly the right sequence. For them, it’s public hearing first, host community agreement next, and only then will BB Botanicals actually purchase the place its dispensary will call “home.”

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