New Generation Meds LLC plans to invest more than $1.5 million into the property on 118 N. Columbus St. in Jackson for a medical marijuana shop.
Thank you for offering me the opportunity to speak here today in support of the Michigan Marijuana Regulatory Agency, Department of Licensing and Regulatory Affairs Marihuana Licenses regulations.
I’m Mayor of the City of Jackson, a city that has 38% of the city under the federal poverty level. We have been hit hard by the consequences and disparate impact of the criminalization of marijuana. We have opted into medical marijuana and were, I believe (and likely because of the proximity of our meeting to the election), the first community to opt into adult use marijuana.
With the legalization of medical and adult use marijuana in the state, we believe that this presents and opportunity both for the state and municipalities across our state to think intentionally about the ways in which we craft policy to reverse that impact and help create a more equitable playing field for those most harmed under the previous system.
That’s why I’m here today in support of a fair and stable recreational cannabis industry in Michigan and that is why I support the labor peace language in the regulations.
We believe this new industry, combined with a well regulated market creates an opportunity for a more stable and sustainable business climate, and allows for the equitable redevelopment of urban cores like Jackson.
That’s exactly the approach we have taken in constructing our regulatory environment in Jackson. We’ve incorporated our rigorous building design standards and other worker oriented policies into scoring criteria that allows us to ensure that the new businesses and developments coming into our community are good for our community.
Jackson is positioned itself to gain the fruits of that labor, with two new multi-million dollar developments slated for preliminary license approval just in the last two weeks.
With our high standards, we’ve ensured these businesses will have clear span buildings with large amounts of fenestration, tree canopy, they will have solar panel carports and other attractive design features.
But they’ve also committed to paying their workers more than double minimum wage, providing them with healthcare with no more than $1,000 out of pocket costs, 6% deferred compensation for retirement, and that those building their buildings will be paid at least 10% over Davis-Bacon wages. Those were conditions of our scoring criteria.
These commitments are a win for cities like Jackson. And under those criteria businesses are tripping over themselves to get the most points in our criteria and secure a license. They believe they can still turn profit with these standards.
Our criteria, coupled with the initial approval of only a few licenses provided a great amount of competition for businesses to actually compete to pay their workers more, to give them better benefits.
The regulation of the market and the control of the licensing process allows for market stability, and provides those businesses and investors the confidence to know that they can invest large sums of capital and not have their market share depleted before establishing themselves.
As a mayor that works with businesses every day, I can tell you businesses want that stability, and that’s what labor peace agreements can further provide.
They are one more arrow in our quiver to ensure that we are building a fair and just regulatory environment that rests on early, strong relationships between labor and management.
Entrepreneurs and developers investing in this industry have certain assurances from their labor force, so that they can have the confidence that their pro-forma will generate a fair return on investment.
They also ensure that local jobs will be well-paid, safe, and family-sustaining jobs.
Labor peace agreements will reward responsible businesses and ensure that Michigan’s cannabis industry is driven by companies committed to making long-term investments in local communities.
We have an opportunity to ensure these businesses don’t just become the next liquor store on the corner. And that is accomplished by high standards and giving workers power through labor peace agreements.
Jackson is undergoing a Renaissance because we have held ourselves to a higher standards as a city, held businesses to a higher standard in terms of their building design standards among other factors, past policies to prohibit discrimination in the workplace and other unfair practices, and have partnered with the business community to create sustainable, equitable growth in our city.
We have also taken the time to build a local regulatory environment to ensure that the same sort of stable, sustainable, equitable growth is also reflected in our blossoming marijuana industry. We ask that Michigan adopt these rules, allows for labor peace agreements, and gives the industry more tools to support communities like Jackson.
Thank you for the opportunity to offer comments.
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Mayor Dobies delivered the above testimony to the Michigan Marijuana Regulatory Agency at a hearing on proposed rules on February 12, 2020.