Get Ready for Round Two: Detroit Opens Applications for New Wave of Marijuana Licenses!
Detroit to Accept Applications for New Wave of Marijuana Business Licenses
The City of Detroit is opening up opportunities for individuals interested in starting marijuana-related businesses. Starting from August 1, the city will begin accepting applications for the second round of limited marijuana business licenses. These licenses cover various types of establishments, including dispensaries, microbusinesses, and consumption lounges.
In this round, a total of 30 licenses will be available for marijuana retailers, along with 10 licenses each for microbusinesses and consumption lounges. The city has made a special provision by reserving half of all licenses for "equity applicants." This means that people residing in communities that have been disproportionately affected by marijuana prohibition and enforcement, as well as those with certified Detroit Legacy status, will have a fair chance at obtaining a license.
This second round of licenses comes after the city awarded recreational retail marijuana licenses to 33 businesses about eight months ago. Since then, recreational marijuana has been officially available for purchase in the city. Some of the dispensaries that have opened their doors to recreational sales include House of Dank on Fort Street and DaCut on Gratiot Avenue in Detroit's Eden Gardens neighborhood. At present, there are 28 recreational marijuana dispensaries operating in Detroit.
The opening of these dispensaries is the result of a long process to allow recreational marijuana sales in Detroit since its legalization in Michigan back in 2018. Crafting an ordinance to accommodate these businesses took several months, but it faced legal challenges, including a federal judge deeming it "likely unconstitutional." Consequently, the city had to revise the ordinance and tackle multiple legal obstacles.
Many of the individuals who were granted licenses in the first round were either already operating medical marijuana dispensaries or were entrepreneurs taking over former dispensary locations. Strict zoning restrictions make it challenging to find suitable properties for cannabis businesses, as entrepreneurs have noted. The city is currently working on reducing the distance that cannabis retailers must be from other types of buildings to address this issue.
According to city code, a maximum of 160 limited recreational licenses can be awarded in three phases. However, there is no limit on licenses for processors, grow operations, safety compliance labs, and other related establishments.
If you're interested in applying for a marijuana business license, make sure to submit your application before the second round closes on August 31. Prospective licensees can expect to receive notifications about their license approval approximately six to eight weeks after that date. More details about the application process and requirements can be found on the city's website. Additionally, Detroit will be hosting informational sessions on July 19 and July 27, where you can learn more. For further information, visit HomeGrownDetroit.org.
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