Menominee’s marijuana boom was supposed to generate a windfall from Wisconsin customers streaming across the border.

Instead, it ignited a six-year power struggle that has divided residents, spurred at least 11 lawsuits, led to personal profits for some city leaders or their relatives and created a questionable power dynamic that involves marijuana companies paying the city’s legal bills.

An unorthodox settlement approved in 2023 sits at the center of the controversy.

In it, the city agreed to give favorable treatment to certain retailers and allow them to cover some of their marijuana-related legal bills — a deal some call problematic and others warn could invite state or federal scrutiny.

State Sen. Edward McBroom, R-Waucedah Township, whose district includes Menominee, fears there is “a real possibility” the AG’s Office or federal authorities could intervene and investigate any possible corruption.

“And that would be really ugly,” he said.

Over the past several years, there has been a flurry of lawsuits, ballot proposals and other legal wranglings as different companies attempted to get a toehold into Menominee’s lucrative border marijuana market.

Amid all the infighting, a recent lawsuit drew attention to an unusual settlement.

After attorneys for Puff Cannabis submitted at least two offers to settle a lawsuit with the city, the marijuana company’s attorney Jennifer K. Green of the Clark Hill law firm said she learned the city’s legal team was not only sharing insider information –including the settlement offer details – with competing marijuana businesses but also being paid by them.

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