Marijuana Industry Social Equity Framework Progress Report
This report outlines the progress made in the social equity framework for the marijuana industry, focusing on community education, aiding disproportionately affected communities, and increasing economic benefits. It discusses key strategies under consideration, outcomes to date, and future goals for equitable development in Grand Rapids. The report highlights initiatives to support marginalized groups and create opportunities for wealth creation in the industry.
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Presentation Transcript
Marijuana Marijuana Social Equity Framework Social Equity Framework MARCH 17, 2020 1
Social Equity Framework Progress Update Pillars/Goals: Community Educate and engage community to fully understand State law and Grand Rapids policy and processes, as well as awareness of opportunities to create wealth in and from the Marijuana industry. Social Equity Aid communities disproportionately harmed by the war on drugs (ex: expungements, etc.) Economic Equity Increase economic wealth and benefits for those disproportionately harmed by the war on drugs, those living in areas that experience disparities, elimination or reduction of barriers, (employment, business & local ownership, supplier diversity, etc.) 2
Social Equity Framework Progress Update Key Strategies under consideration: Reviewing best practices, including: Massachusetts; San Luis Obispo, CA; Illinois; literature review; Oakland, CA; and, Detroit, MI Researching creation of Marijuana Investment Fund Reviewing licensing system that drives desired outcomes Partnering in expungement support Investing in Micro Local Business Enterprise (MLBE) development through the Marijuana Investment Fund, including: support for business incubation; loan collateralization; and Business Reuse Incentive Plan (BRIP) in Neighborhoods of Focus (NOF) Youth employment with priority to persons in NOF Targeted NOF investment for parks, infrastructure and housing 3
Social Equity Framework Progress Update MIVEDA Outcomes to Date Of the 45 Total Applications: 11 (24%) applications were for locations in Neighborhoods of Focus 56 of the 101 total applications have been buffered out to date 42% of the applications asserted at least 25% City of Grand Rapids ownership One new application for Special Land Use has been received in four and a half months 4
Social Equity Framework Progress Update MIVEDA Outcomes to Date (continued) 50% of applicants have pledged to employ at least 15% Grand Rapidians Half of applications submitted for Ward 1, 2 and 3 asserted creation of 30 + jobs 24% or more MLBE usage was committed to by 67% of applicants Results in each of these categories were uniformly lower for applicants located on NOF parcels 5
Social Equity Framework Progress Update Sample licensing ideas currently being explored and vetted include: Creating a point system for license applications, with potential factors like: Keeping Marijuana Industry Voluntary Economic Development Agreement (MIVEDA) commitments/willingness to extend MIVEDA beyond three years Real estate ownership by local residents/interests % Local ownership of recreational marijuana businesses % Minority ownership of recreational marijuana businesses % Of ownership of recreational marijuana businesses by persons impacted by the war on drugs (to be defined) % of hiring from NOF % Supplier diversity proposed Creation of joint ventures or mentor protegee relationships with suppliers and contractors 6
Social Equity Framework Progress Update Sample licensing point ideas continued: Voluntary annual investment in a Marijuana Investment Fund Point deductions for license applicants that fail to meet MIVEDA obligations Voluntary annual investment in a qualified business incubator Majority local ownership (a criteria for which no MIVEDA points were available) Neighborhood social impact remedy planning and investment Paying the Asset Limited, Income Constrained, Employed (ALICE) wage with benefits, Zoning approval without waivers 7
Social Equity Framework Progress Update Additional Licensing concepts being explored: Reserve licenses for recreational marijuana equity applicants, perhaps in a way that liquor licenses are provided in the Downtown Development Authority and Corridor Improvement Authority districts Deferred licensing status: Developing rules that would enable us to review initial performance under any MIVEDA they might have used to determine if the company is complying for the purposes of deciding whether to issue a recreational license to that company at that time. Companies not in compliance would be placed in deferred licensing status. Reserve microbusiness licenses for populations that experienced harm 8
Social Equity Framework Progress Update Create a Marijuana Justice Investment Fund and pool resources there for investment in strategic outcomes Potential Sources of revenue: Net Medical and Recreational Annual License Fees after regulatory costs State Shared Recreational MJ Sales Tax revenue (after two years) Potential identification of new property tax revenue from new MJ operations and allocating a portion of that new revenue to the Fund for a period of time Supplemental fees (Is there local or state authority for additional fees like a recreational marijuana investment fee) Donations Company investments A share of County Medical Marijuana revenues 9
Social Equity Framework Progress Update Eligible Investments to focus on community benefit and create new opportunity in Neighborhoods of Focus could include: Expungement support MLBE development and business support Development support to persons harmed by war on drugs Youth employment - Leadership and Employment, Achievement and Direction (LEAD) Program (or other approach) Business development services Loan collateralization BRIP in NOF Targeted NOF investments like infrastructure, parks or affordable housing 10
Social Equity Framework Progress Update Timeline Executive Session - March 17 Amend Licensing Ordinance to Extend 4/20/20 date March 17 Introduce Ordinance - 3/17/20 Adoption and Immediate Effect - 3/31/20 11
Social Equity Framework Progress Update Recreational and Medical Zoning ordinance Amendments Set Public Hearing - 7/21/20 Public Hearing - 8/25/20 Adoption - 9/15/20 Effective Date - 10/20/20 Licensing Ordinance Set Public Hearing - 7/21/20 Public Hearing - 8/25/20 Adoption - 9/15/20 Effective Date - 10/20/20 12
