Serving Gogebic, Iron and Ontonagon Counties

Marenisco approves limited recreational marijuana activity

By P.J. GLISSON

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Marenisco — Members of the Marenisco Township Board of Trustees voted Monday evening to approve an ordinance allowing recreational marijuana enterprise within the limited area of the former Ojibway Correctional Facility.

The unanimous vote, with all members present, included related action that will change zoning in that locale from Commercial 1 to Commercial 2.

The vote followed a public hearing that drew fewer than 20 people to the community room of the Marenisco Township Hall, and inspired inquiries but no real protest.

Monday’s outcome was the culmination of round two of what has been a contentious exploration of what decision would be best for the township after state voters declared the use of recreational marijuana legal more than two years ago in November 2018.

In the summer of 2019, board members passed a previous ordinance allowing marijuana enterprise within the township, but that vote was followed quickly by a petition to put the matter on the ballot, and township citizens then voted it down in November of that year. In that same month, the board voted to rescind the ordinance, but no action had been taken since then.

On Monday, Supervisor Bruce Mahler said the new ordinance retains many of the same provisions as the original ordinance but allows recreational marijuana enterprise in “permissive areas” that are restricted to the former OCF site.

Moreover, Mahler explained that the ordinance does not allow only marijuana enterprise. “It’s also for other business,” he said.

According to the new proposed zoning ordinance change, the former OCF site includes nearly 131 acres. It encompasses several buildings that are still surrounded by barbed wire fencing in a secluded area south of the “downtown” region of the unincorporated area of Marenisco.

The Michigan Department of Corrections closed the prison at the end of 2018, claiming that it was no longer economically viable to keep it open.

Since then, state officials have taken steps to allow the property to be sold via the state Department of Management and Budget.

Although many Marenisco Township residents did not want recreational marijuana enterprise within residential or downtown areas, the newly revised ordinance allowed more of them to see the economic gain in allowing such activity within the enclosed area of the former prison.

“I don’t see a problem with it,” said Marenisco Public Works Director Dean Hand, while referring specifically to the remoteness of the targeted region.

Hand also asked during Monday’s hearing about the potential for property tax, and Mahler pointed out that township officials do not yet know the value of the property because the right to assess it is in the hands of the state, which is working toward that end.

Past speculation, however, has put the value in the millions, and Mahler assured, “It’s supposed to be sold at real market value.”

At the time the state closed the prison, state officials said one advantage for the township would be that private ownership would enable the township to collect property taxes.

If the property results in being used for recreational marijuana enterprise, Mahler said Monday that the township will be able to collect licensing fees and a percentage of related taxes in relation to marijuana product activity.

Interest in the former prison property as a site for recreational marijuana enterprise began when an out-of-state prospective buyer voiced such intent a year ago. He since has been working closely with state officials and has submitted a repurposing plan for the property.

Mahler said that a developer has stated his goal is “to produce and provide product outside of this region” with his closest clients anticipated to be downstate. The pending buyer estimates that his prospective operation could employ 100 to 200 persons.

“What’s our plan for growth?” asked Al Fairfield during the hearing. He questioned whether Marenisco can absorb that many new people.

Other hearing attendees cheerfully shouted him down, calling out responses such as “They don’t have to live here.”

Moreover, cautioned the supervisor of the prospective buyer, “He’s got to buy that property first. Who knows if that is going to happen?”

Mahler also noted that the new ordinance also allows for other economic enterprise, and he reminded that other business people also have shown interest in using the property for pursuits unrelated to marijuana.

In reference to the state, he emphasized, “Whoever chooses to pay what (the state) wants will get the facility.”

He added, “I would think if the state got the offer it wanted for the property, it would sell it as soon as possible.”

During the board’s regular monthly meeting after the hearing, Treasurer Kathy Leonard made the motion to approve the ordinance, and Trustee Kelly Dunbar seconded it.

Clerk Donna Kenney and Trustee Dave Hagen also voted aye, along with Mahler, even though he had earlier noted, “I never was a proponent. I’m still not a proponent.”

Nevertheless, Mahler said he is “practical” about the township’s potential for a legal revenue stream from the possibility of recreational marijuana enterprise.

The supervisor — who made the resolution of recreational marijuana enterprise his first priority after being voted in at last year’s November election — said that township attorney Jim Bucknell will proceed with publishing the ordinance when he returns from vacation.