Cannabis

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:

1. Submit a municipal license application following receipt of a zoning approval
2. 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
3. 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.

Cannabis business licensure

All cannabis businesses in the City of Grand Rapids must hold an active municipal license to operate.

Cannabis businesses in the City must hold both an active local license issued by the City of Grand Rapids, and an active State license issued by the Cannabis Regulatory Agency of the State of Michigan. Local licenses expire on the same date of a State license, including initial licenses issued by the City after the date of issuance of a State license. 

Obtaining a new cannabis license

Prior to the expiration of a current local license, operators can submit a new licensing application for the next licensure period. A new local license issued by the City will match the expiration date of a next State license.

Quarterly self-reporting

Cannabis businesses are required to report to the City on a quarterly basis on zoning and licensing elements, in addition to a quarterly update on social equity and Good Neighbour Plan performance.

Annual City inspection

Following a submission of a Cannabis Related Municipal License application and prior to the expiration date of a local license, the City will conduct an inspection of the cannabis business. Locations with multiple local licenses and expiration dates need only schedule one inspection, based on the earliest expiring license in a calendar year. This inspection will cover all future licensing applications in that same year. An annual City inspection includes a review of the following elements:

• Zoning Compliance
• Licensing Compliance
• Equity Compliance
• Good Neighbour Plan Compliance (including a confirmation of compliance by a Neighbourhood Association)
• MIVEDA/CISEVA Transfer Approval (if applicable)

Timeline of public policy development for recreational cannabis

• September 10, 2019: Planning Department gives a preliminary presentation to City Commission about local recreational cannabis.
• September 24, 2019: City Commission discusses recreational cannabis facilities.
• October 8, 2019: City Commission approves a licensing ordinance for recreational cannabis facilities and starts a six-month period for licensing and zoning regulations to be developed before the City begins accepting applications.
• February 25, 2020: City Commission discusses an amendment to the zoning ordinance proposed by Planning Commission.
• March 17, 2020: City Commission approves an ordinance amendment that delays the acceptance of cannabis-related municipal license applications to no later than October 20, 2020.
• June 16, 2020: Cannabis Justice Work Group gives a preliminary presentation to City Commission about cannabis business recommendations.
• July 7, 2020: City Commission approves amendments to the zoning and licensing ordinances for fast-track uses and adopts the Cannabis Social Equity Policy.
• July 21, 2020: Planning Department gives a presentation to City Commission about deliberative uses.
• August 8, 2020: Planning Commission discusses amendments to the Sensitive Land Use regulations in the Zoning Ordinance.
• August 25, 2020: Planning Department gives a presentation to City Commission about deliberative track uses.
• September 29, 2020: City Commission approves amendments to the zoning ordinance for microbusinesses and facilities with established medical land uses.

The City of Grand Rapids offers two social equity programs in relation with the cannabis industry: the Marihuana Industry Voluntary Equitable Development Agreement adopted in 2018 and the Cannabis Social Equity Policy adopted in 2020. The City encourages participation in these programs and to follow the recommendations of these policies in order to make this industry more equitable.

Marihuana Industry Voluntary Equitable Development Agreement (MIVEDA)

The MIVEDA was created with the establishment of the initial medical cannabis uses in the City of Grand Rapids. The goal of this program was to encourage equitable development and maximize local economic impact. The MIVEDA is a voluntary agreement that provided opportunities to streamline the application process during the establishment of the medical industry.

Cannabis Social Equity Policy

The Cannabis Social Equity Policy was created in 2020 with the goal of embedding equity during the addition of recreational cannabis to the existing medical industry. This program envisions the creation of a recreational industry that uplifts members of our community who have been negatively affected by the presence of cannabis. The Cannabis Social Equity Policy is effectuated via a Cannabis Industry Social Equity Voluntary Agreement (CISEVA). The CISEVA is a voluntary agreement that provided opportunities to streamline the application process during the establishment of the recreational industry.

Cannabis or Marihuana?

Consistent with the Cannabis Social Equity Policy, the City of Grand Rapids continues to transition using the word marihuana in all City ordinances, policies, forms, etc. to cannabis. The City believes this change helps remove the historical stigmas and negative connotations associated with the word marihuana.

Cannabis Social Equity Policy

To read the Cannabis Social Equity Policy, click here.

Cannabis Industry Social Equity Compliance Administrative Policy

To read the Cannabis Industry Social Equity Compliance Administrative Policy, click here.

What are the elements of the Policy?

1. Equity Components and Definitions
2. Equity Categories for the Application Process
3. Equity Points System
4. Application Process and Prioritization System
5. Implementation, Compliance, and Enforcement of the Policy

How does the Policy work?

Amended articles in the Zoning Ordinance

• Article 9: Use Regulations
• Article 10: Transportation and Mobility
• Article 12: Application and Review Procedures

Sensitive Uses

The City of Grand Rapids has the following sensitive uses for cannabis businesses:

• Childcare centers
• Schools
• Religious institutions
• Publicly owned parks or playgrounds
• Substance abuse disorder programs licensed by the State
• Residential zone districts along the primary street frontage
• Youth centers

On September 29, 2020, City Commission added youth centers as a sensitive use and defined them as:

• "A government or nonprofit facility that offers regular, on-site programs and services primarily to persons 18 years of age and under and is used for said programs and services for a minimum of three (3) days a week year-round. Programs and services may include, but are not limited to, social, training, cultural, artistic, athletic, recreational or advisory services and activities and includes private youth membership organizations or clubs and social service teenage club facilities"

Waivers

On September 29, 2020, City Commission eliminated the waiver process for cannabis businesses.

Sensitive use waivers granted before September 29, 2020 for a medical provisioning center may be applied to the consideration of a recreational retail at the same location as part of the Planning Commission process.

Microbusiness

The Michigan Regulatory Agency defines microbusiness as:

• "A licensed facility allowed to cultivate not more than 150 plants; process and package; sell cannabis to individuals 21 years or older; or transfer cannabis to a safety compliance facility."

The zoning requirements for microbusinesses are as follows:

Director Review in IT

• 1,000ft from defined sensitive uses and residential Zone Districts

• No separation distances from other cannabis facilities

Licensing Ordinance

• Chapter 105: Cannabis Related Municipal Licensing

Medical and recreational cannabis business licenses

Medical cannabis and recreational cannabis are considered separate land uses (even if they share the same parcel). This means that a local business license for each use is required to ensure operation.

Some recreational cannabis businesses needed a medical business license as part of their State prequalification during the application process; this extends to operations as well. All businesses that had this requirement need to keep their medical license in good standing to remain eligible for recreational operations.

Beginning March 1, 2021, the State will begin accepting applications from any applicant and will not require a medical business license prior to applying for a recreational use.

July 16, 2020: City of Grand Rapids gives a presentation to the community ahead of the July 20, 2020 date to start receiving applications for cannabis uses eligible for Director Review.

August 21, 2020: City of Grand Rapids gives a presentation to the community ahead of the September 1, 2020 date to start receiving applications for cannabis uses requiring Special Land Use.

October 15, 2020: City of Grand Rapids gives a presentation to the community ahead of the October 20, 2020 date to start receiving applications for cannabis uses from applicants with established zoning approvals via waivers.