Detroit marijuana operators sue city after late license revocation

December 7, 2023 · MJ Biz Daily

A group of Detroit marijuana operators are suing the city for revoking a business license years after it was granted and only after they’d invested $15 million in a cultivation operation.

According to a complaint initially filed Nov. 9 in Wayne County, Michigan, but then moved to federal court, Detroit officials granted the would-be business operators a series of permits to run a marijuana cultivation and processing facility beginning in 2020.

The operators – identified in court documents as Cannabis Professional Design, MB City Transportation, HZ Detroit Holdings 1 and HZ Detroit Holdings 2 – purchased an industrial property and commenced improvements.

All was well and a certificate of occupancy was granted in September 2023, only for city officials to inform the businesses on Oct. 27 that the property was within 1,000 feet of a charter school and that the license would therefore be revoked, the lawsuit alleges.

By that time, the operators had already “hired over a dozen employees” and signed an additional $20 million in contracts with third parties for biomass and other services, the lawsuit claims.

The operators filed suit rather than wait until 2024 for a zoning-appeals hearing, court records note.

The lawsuit seeks restoration of the revoked license.

But since the lawsuit claims violations of the applicants’ rights under the U.S. Constitution, attorneys for Detroit moved the case from state to federal court.

On Dec. 1, a judge rejected the plaintiffs’ request for a preliminary injunction that would have restored their license and expedited hearings.

More filings in the case are due Dec. 21, and the first court appearance is scheduled for Jan. 30. (Full Story)

In categories:Cultivation Legal
Tags:
Next Post

Selling Cannabis Licenses for Pennies on the Dollar - Oregon's Outdoor Harvest Was So Massive It Crushed Prices

Once again, Oregon's cannabis producers have faced an oversupply issue, as revealed in a recent report. This perpetuates the ongoing challenge of excess marijuana within the state's regulated cannabis industry. Throughout much of the current year, analyses of Oregon's cannabis production…
Read
Previous Post

10 Things to Know About Terpenes

The cannabis industry is abuzz over terpenes. Everyone in the know is claiming it’s “all about them terps brah,” but do you truly understand these magnificent compounds? Here are 10 things you probably didn’t know about the intoxicating aromas of cannabis.…
Read
Random Post

The Best (and Worst) Ways to Store Your Weed

Whether you’re smoking boof, rolling up, or ripping a bong, without proper storage, you’re wasting your weed. You’re wasting money, too. Exposure to oxygen, sunlight, and heat are all factors that will degrade the flavor and freshness of your flower.…
Read
Random Post

DEA Response Clarifies Psychedelic Mushroom Spores Are Legal Before Germination

The U.S. Drug Enforcement Administration (DEA) has made its position on psilocybin and psilocin, two psychedelic compounds produced by “magic” mushrooms, fairly clear as states across the U.S. have begun softening regulations on their therapeutic use.  Though it may seem…
Read
Random Post

Michigan Bill Would Allow Students to Use Medical Cannabis at School

A bill introduced in Michigan seeks to allow students to use medical cannabis at school, CBS News reports. It is the second time the measure, known as Jayden’s Law, has been introduced in the state and supporters say it would allow students…
Read
Random Post

Anchorage, Alaska Proposal Would Relax Cannabis Policies for Most City Employees

City officials in Anchorage, Alaska are considering exempting some city employees from penalties for cannabis use, Must Read Alaska reports. Instead of termination, employees who test positive for cannabis will be offered counseling and addiction treatment.   According to the proposed ordinance text, the purpose…
Read