Serving Gogebic, Iron and Ontonagon Counties

Marijuana business appeal denied

IRONWOOD — An adult use marijuana establishment business seeking to operate a retail outlet in Ironwood was denied an appeal regarding its place in the scoring in the ranking process at the city commission meeting on Monday. 

The city commission 4-0 affirmed the city manager’s review finding that stated there were no reasons to change the scoring result in June for Cultivatd LLC, which was used among the recommendations to the city commission for tentative approval of licenses to the top two scoring companies in each of eight license categories. City Commission member Joseph Cayer was not present.

CultivatD LLC, an Ironwood company, was tentatively approved for one of two marijuana processor licenses along with Free World Farms Inc. The license allows a business to obtain marijuana from establishments for processing, packaging and sales to other establishments.

CultivateD did not score high enough in competition for one of two available licenses to operate a marijuana retail establishment. The company had planned a retail outlet at 326 W. McLeod Ave. 

The recommended applications for retail marijuana establishment licences were to Higher Love Corporation and Rize U.P. The license allows retail marijuana product sales to individuals ages 21 or older.

CultivateD also failed to score high enough to receive one of two class C marijuana grower and processor establishments. The company had planned the facility at 1700 Iron King Road.

The recommended class C grower facility license applicants were The Fire Station Cannabis Company and Rize U.P.  The license allows for up to 2,000 plants.

Procedurally, the company has the right to appeal some of the scoring rubric areas where the owners felt they should have scored higher than the city applied to those sections, said Scott Erickson, city manager. It is the city manager’s responsibility to conduct the review and there did not appear to be any discrepancy with the initial scoring process or areas where additional scoring would be warranted, he said. 

The company correspondence to the city noted differences of opinion in seven of the scoring areas. The city replies noted where responses were scored less based on the information provided.

“I think the scoring was proper and adequate from the original scoring that was put in place,” Erickson said. “That scoring was a very extensive process with staff involved, the city planning commission and the city commission, ultimately.”

The city commission has the authority to evaluate the findings and either affirm the city manager’s decision or make a different determination on any or all of the contended areas of the scoring rubric, he said. 

Council member Kim Corcoran said she reviewed the scoring rubric of all the companies that were not among the top two selected for licenses in each category when the city commission was considering adding extra licenses. Having read the appeal, she could see no reason to change the scoring, but rather allow the company to be reconsidered in the future.

“At this point, I would support the denial of the city manager and regroup,” Corcoran said. “We would be looking at everything again in approximately a year.”