New Bedford – Medical marijuana could be growing in the city’s industrial park as early as the spring if a Newton-based nonprofit wins approval from the state’s Department of Public Health.
Mayor Jon Mitchell announced Thursday that the city has successfully negotiated a Host Community Agreement with ARL Healthcare Inc. to cultivate and process marijuana in the New Bedford Business Park. The operation still needs to meet other requirements, including negotiations with private companies, state approval and a nod from City Council, officials said.
If everything moves on schedule, ARL is hoping to be operating in the spring of 2017, said Derek Santos, executive director of New Bedford’s Economic Development Council.
The company is currently seeking approval from the state DPH to run the medical marijuana growing facility at the Aerovox building inside the business park, Santos said. He noted that approval was expected over the winter.
ARL spokesman Chris Reilly said the New Bedford facility would be used solely for producing medical-grade marijuana, which would be trucked to dispensaries elsewhere in the state. He said ARL is proceeding with plans for distribution sites in Middleboro, Norwood and a third, yet-to-be-disclosed, community.
Medical marijuana would be grown entirely indoors, he said, either in a soil-like medium or hydroponically. Reilly said there would be a limited number of deliveries from the New Bedford production facility to the distribution sites – likely one or two shipments per week in a secure vehicle under strict safety protocol determined by the state.
Reilly said he could not yet provide details about the size of the growing area or the amount of marijuana expected to be produced in New Bedford, adding that more information would be forthcoming as ARL works toward state approval.
The agreement is a step in the process, Reilly said. To win approval from the state, applicants have to show that the host community is in favor of the proposal.
Negotiations were underway with the property owner and with Aerovox, Santos said.
One benefit to the city is that Aerovox would remain in place at the 167 John Vertente Boulevard site, but the building would be partitioned to accommodate the marijuana-growing operation, Santos said.
He said a key point in negotiations was that if ARL wanted to locate at the site, Aerovox would have to remain, along with the New Bedford jobs. The marijuana-growing operation will bring an additional 50 to 100 new jobs to the city, he said.
"We think this was a big win to have ARL at this location," Santos said.
"It was important to me to save the Aerovox jobs," Mitchell said in a phone interview Thursday.
The mayor explained that his long-standing criteria for any marijuana production facility is that it must be located away from neighborhoods and have strict security. He said the ARL facility can’t go online until it has a security plan that has been approved by the state, and the state standards are rigorous enough to protect neighborhoods.
READ MAYOR MITCHELL’S 2013 STANDARD-TIMES COMMENTARY ON SITING A MEDICAL MARIJUANA FACILITY
Under additional terms of the deal, ARL will also provide substantial benefits to the city and its residents, the mayor noted in Thursday’s announcement:
- The nonprofit will not exercise its exemption from local taxes, thereby helping New Bedford broaden its tax base and reduce the burden on residents and businesses.
- ARL will make annual payments to offset social impacts, public safety and other city expenses associated with the facility. Under the agreement, the city will receive at least $425,000 in the first five years, with the potential for higher payments. After the facility is operational, payments are expected to be at least $300,000 per year. City officials noted that the payments are among the most generous for cultivation and production facilities statewide.
- ARL will also work toward job-creation efforts and vendor goals that favor local residents and small businesses.
Mitchell said the agreement was based on ARLs ability to meet his siting and safety requirements. In addition to security and siting in an industrial area, away from the city’s schools and neighborhoods, Mitchell sought these requirements:
- The operation would be production-only. It would not dispense marijuana or marijuana products.
- It would create a significant number of new jobs. (In the case of ARL, the estimates are for 50 to 100 full- and part-time positions.)
I have undertaken all the actions available to me as mayor under Massachusetts law to advance the ARL proposal while also advancing the citys interests, he said in the announcement.
Mitchell said he has been in contact with city councilors, and members are aware of his criteria for locating a medical marijuana facility within the city.
The mayor stressed that there will be no retail operation in New Bedford. "One thing people should know about the facility is that it will look like any other factory and it will be in an area with other factories," he said.
The announcement included comments from ARL Healthcare President, Ken Housman:
ARL Healthcare appreciates the opportunity to locate our business and bring new jobs and revenue to New Bedford, Housman said. New Bedford has set forth rigorous standards for the operation of a medical cannabis cultivation and processing facility. ARL Healthcare will meet all the standards for quality, security, and safety that Mayor Mitchell has established.
The agreement is being submitted to the City Council for approval as required by law.
The New Bedford facility would not be the only medical marijuana production site in SouthCoast. AmeriCann of Denver, Colo., is planning a large-scale marijuana production facility on 52 acres off Route 24 in Freetown.
News Moderator: Katelyn Baker
Full Article: New Bedford Reaches Deal With Marijuana Producer
Author: Andy Tomolonis
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Website: South Coast Today
