Marshall — Two years after Michigan’s first legal recreationalcannabis sale, state marijuana regulators say they are now focusing efforts on increasing social equity in the industry to prevent a monopoly of dispensary chains.
But financial hurdles, a lack of experience and a slow process of approving applicants still plague entrepreneurs in communities that the program aims to help, including cities like Detroit, Flint, Kalamazoo and Ypsilanti.
When Michigan voters legalized marijuana sales in 2018, the state was required to establish a program to provide education, assistance and pathways for entrepreneurs to successfully navigate the cannabis industry while improving communities where residents were previously disproportionally targeted for pot use. Applicants for the social equity program have to live in one of the disproportionately impacted communities for at least five years, or have a marijuana conviction or have been a caregiver between 2008 and 2017.
Since the program launched in 2019, the Michigan Marijuana Regulatory Agency has received 1,800 applications but granted just 90 licenses. An approved application means up to 60% off state licensing fees and access to virtual education sessions, legal advice and other resources.
Jeff Guyton is among the fewer than 1% of applicants to have received a license from the Michigan Marijuana Regulatory Agency. He recently received city approval for his plan to turn a dilapidated Ypsilanti landmark, the 99-year-old former Farm Bureau building, into a recreational dispensary.
Guyton, 48, started his application with the state’s program just over a year ago. While he said he was guided by state officials through the process, it wasn’t entirely what he needed to become operational.
“This is a dream,” Guyton said, adding that it wouldn’t have come to fruition without the capital partnership he made with Birmingham-based Quality Roots, giving up 49% ownership to run a franchise for the recreational marijuana company that has locations in Hamtramck and Battle Creek. Social equity applicants have to hold at least a 51% stake in a company’s ownership.
He believes the state’s program is essential because most applicants trying to break into the lucrative industry will face the same financial struggle, he said.
The project will cost $1.4 million to renovate the 3,000-square-foot retail space, another $6,000 for a city permit, and $25,000 to $40,000 for the state licensing fees that need to be renewed each year.
“I was really lucky. I haven’t had to put in any of my own capital,” said Guyton, who formerly worked as a medical marijuana caregiver. “There’s absolutely no way I could have done this on my own.”
The financial hurdles have led experts, including Anquenette Sarfoh, a board member of the Michigan Cannabis Industry Association, to question how the program should be refined in the…
Read More: Michigan marijuana regulators want to prevent a dispensary monopoly