Detroit has passed Adult-Use Cannabis Regulations and opportunities are flourishing!
You still have time to submit an application. Contact us for support with your application, especially if you are a social equity / legacy applicant or are searching for an applicant to join your team!
After the passage of regulations this Tuesday 11/24, Detroit has become the most recent city in Michigan to legalize adult-use Marijuana and their regulations are ripe with opportunity.
With a population of around 670,000 residents, Detroit is over three times larger than any other city in the state. City officials are looking to expand the cannabis industry in a way that revitalizes the city’s economy and provides pathways to combat historic social inequalities.
This is a unique and exciting chance for many new applicants to enter the cannabis market.
What is different about Detroit’s cannabis regulations?
The Motor City will not only be issuing a massive amount of every state license type, but will also boast one of the most robust and beneficial social equity programs of any municipality in the country!
The amount of consumption lounges and the unlimited amount of Grower, Processor, Safety Compliance, Secure Transporter and Event Licenses is unlike any other municipality in the country.
Take a look through this article and then contact us with any other questions. We are ready to support legacy applicants in finding businesses or to help a business find the right applicant for their team.
Report prepared by Mitch Kreamer, Market Research Analyst at Cannabis Real Estate Consultants as an in depth analysis of Detroit’s new cannabis regulations, application process, and how you can find opportunities in this huge new market!
Detroit Cannabis Regulation Analysis
The City will begin accepting applications for adult-use marijuana establishments with 13 licenses on April 1, 2021, and shall review license applications submitted by April 30, 2021. Make sure you get started early and work with the professionals. Below is our analysis of the new regulations. Contact us with any questions.
Allowed Cannabis Uses and Caps in Detroit
Detroit is aiming to take full advantage of the budding cannabis industry to bring an infusion of new business into a long struggling local economy ravaged by the decline of the domestic auto industry.
The city plans to issue licenses for every type of state license type: Growers, Retailers, Processors, Safety compliance, Secure transporters, Temporary Marihuana Events, Marihuana Event Organizers, Designated Consumption Establishments, and Microbusinesses containing a combination of multiple license types.
The inclusion of Designated Consumption Establishments, a rare license type that allows consumption of cannabis on site, can make Detroit a unique destination for cannabis tourism.
In addition to offering a wide array of cannabis business opportunities, the city is also making far more cannabis permits available than most cities.
Licenses available for:
- 75 Medical Marihuana Provisioning Centers
- 75 Adult-Use Retail Centers
- 35 Consumption Lounges
- 35 Microbusinesses
- Unlimited amount of Grower, Processor, Safety Compliance, Secure Transporter and Event Licenses!
Detroit may very well be the single most cannabis friendly city in the country!
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Social Equity in Detroit – Ensuring Opportunities Benefit the Detroit Legacy Community
Part of what has taken Detroit so long to pass adult-use regulations has been a concern from city leaders that an influx of outside operators could quickly snatch up available licenses, crowding out the market and keeping local residents from benefiting from the economic opportunities offered by the cannabis industry.
Councilman Tate said, “We have taken the necessary time to craft legislation that is not aimed at excluding anyone from their goals to succeed in this market but to ensure that we legally providing a pathway towards inclusion and opportunity for residents of our city, which has been disproportionately impacted by marijuana convictions. Many are now profiting from the same plant that has lead to countless criminal convictions which devastated countless families within our city. The time has come for equity currently not present within Detroit’s cannabis industry.”
Included in Detroit’s adult-use regulations, is one of the most impactful social equity and local resident benefit programs of anywhere in the nation:
Legacy Applicant Requirements: Residents who have lived in Detroit for 15 of the last 30 years, lived in Detroit for 13 of the last 30 years and are low income, or lived in Detroit for 10 of the last 30 years and have a marihuana conviction will be eligible to apply as “Detroit Legacy” applicants.
Detroit Social Equity “Legacy” Benefits:
- 99% of initial application fees waived
- 50% of all newly created recreational marijuana business licenses issued in Detroit
- 25% of fair market value to purchase city owned property zoned for cannabis
Additionally, the city will waive 99% of their initial application fees, and work with philanthropy and private lenders to develop sources of funding and expertise to back Detroit-owned marijuana business start-ups. Finally, Detroit Legacy applicants may apply for a provisional license if they do not yet have a properly zoned location, and if approved, will have up to twelve months to find an appropriately zoned location.
With all of these competitive advantages, Detroit Legacy applicants may face some of the lowest financial barriers to entry in the entire US cannabis industry, hopefully offering communities that have been disproportionately impacted by the war on drugs to have a fair chance at the opportunities in the cannabis industry.
For more information on how social equity programs can help restore opportunities to communities that have been long hurt by the war on drugs, read our discussion with Donnie Anderson, co-founder of the California Minority Alliance.
Cannabis Application Period Coming Soon in Detroit
While these regulations are new, the period during which the city will accept adult-use marijuana applications is approaching soon. The City will begin accepting applications for adult-use marijuana establishment 13 licenses on April 1, 2021, and shall review license applications submitted by April 30, 2021.
The application review period will be split up into three different priority periods, to ensure that a proper number of licenses are awarded to Detroit Legacy applicants. First there will be a 6-week reserved application review period for Detroit Legacy applicants between May 1st – June 15th. Second, there will be a 6-week reserved application review period for current Detroit medical marijuana facilities from June 16th – July 31st. And finally, all other applications will be reviewed on an ongoing basis from August 1st until all applications have been reviewed.
This will be a merit based- application process, and applications will be reviewed in randomized order.
April 1, 2021, May 1st – June 15th, or June 16th – July 31st. Which date can we help you meet with you application in Detroit? Let us know if you are interested below.
Contact For Detroit Cannabis Applications
CREC is the leading brokerage and compliance firm closing cannabis transactions throughout the United States. Contact us to find out more about the new rules and regulations in the United States, and we will help you get ahead of the competition and find viable properties in these new exciting markets!
How can we help your application?