Starting a cannabis business
The City of Grand Rapids is currently accepting applications for cannabis operations on a first-come first-serve basis. Two main requirements are needed before starting a cannabis business in the City:
- Zoning approval for a cannabis use
- Municipal license for a cannabis business
An operator must receive zoning approval prior to applying for a municipal license. In addition, a State license issued by the Cannabis Regulatory Agency is also a requirement when applying for a municipal license.
Types of cannabis businesses allowed
The City of Grand Rapids permits the following cannabis uses:
- Growers (all classes, including excess)
- Processors
- Provisioning Centers (medical) and retailers (recreational)
- Safety compliance facilities
- Secured transporters
- Microbusinesses (recreational)
Unless otherwise noted above, all uses include medical and recreational operations. Collocation of some license types may be allowed in certain areas of the City. Any uses not listed below are prohibited in the City of Grand Rapids.
Cannabis zoning approvals
A zoning approval issues rights to pursue a cannabis use on a specific City parcel. The City offers two ways to process a cannabis zoning application:
- Special Land Use: A public process that includes a presentation and a hearing before the City Planning Commission, who ultimately issues the approval.
- Planning Director Review: A administrative process that includes a review by City staff and/or the City Planning Director, who ultimately issues the approval.
A zoning approval is issued directly to a City parcel and not to the applicant or operator (i.e. the approval "runs with the land"). Zoning approvals may include additional conditions that are tied to the cannabis use at that location. These conditions remain valid for as long as the use remains active and even after changes in management, ownership, or licensee.
Cannabis municipal licenses
A municipal license authorizes the local operation of a State-licensed cannabis business at a specific City address. Municipal licenses are valid only for the entity named on a State license at the same location and may not be sold, assigned, or otherwise transferred. The City offers the following process for cannabis licensing:
- Submit a municipal license application following receipt of a zoning approval
- Municipal application review, including a multi-departmental review by the following City departments: Assessor, Building, Fire, Income Tax, Planning, Police, Treasury, and Sustainability, and verification of current State licensure
- Approval and issuance of the municipal license by the City Clerk, with an expiration date matching that of the State license submitted
Application fees
The City of Grand Rapids assesses a fee of $5,000 per cannabis use per year. Please note that the following exceptions apply:
- The fee for an initial cannabis zoning approval will also cover the fee for an initial cannabis municipal license if local licensure is obtained within one (1) year of the zoning approval. The remainder of the annual municipal licensure past that first year will be prorated and assessed at the next license renewal.
- Social Equity applicants per the Cannabis Social Equity Policy are eligible for a 50% discount on fees, upon verification of social equity status with the Office of Equity and Engagement.