New licenses for marijuana growing facilities will no longer be issued in Iron Mountain under city ordinance amendments adopted Monday without objection.
By the council’s action, the two existing growers and processors on North Stephenson Avenue — Rize Cannabis and Smoke UP Farms LLC — may continue to operate, or later sell to other operators if they choose, said City Manager Jordan Stanchina.
By the council’s action, the two existing growers and processors on North Stephenson Avenue — Rize Cannabis and Smoke UP Farms LLC — may continue to operate, or later sell to other operators if they choose, said City Manager Jordan Stanchina.
Oversupply and competition has made growing and processing less attractive to investors and the decision to cap the number of facilities met no resistance. Up to five growing and processing facilities were allowed under the city’s initial licensing, but two of the four that were operating have closed in the past year, Stanchina said.
The decision to issue no new licenses was linked, in part, to odor complaints, although it’s rarely been a topic at council meetings.
Meanwhile, Rize at 1580 N. Stephenson Ave. and Lume Cannabis at 119 S. Stephenson Ave. will continue as the only two retail outlets in Iron Mountain.
They were awarded licenses in 2019 through a competitive process as the city capped the number of dispensaries at two. Rize pledged a $5 million investment, while Lume committed to a $2 million project.
Lume has been paying $5,000 annually to the city for a growing license but doesn’t have such a facility, Stanchina said.
Michigan voters approved the recreational use of marijuana through a 2018 ballot initiative. Sales by Rize began in late 2020 in Iron Mountain.
Legislation was introduced in October to place a statewide cap on marijuana retail licenses and remains in the Senate Regulatory Affairs Committee. State Sen. Sam Singh, D-East Lansing, a co-sponsor of Senate Bills 597 and 598, said the cannabis industry faces over saturation of license approvals.
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