In Menominee, MI, there’s been a shift in the landscape of marijuana sales. Rather than street corner disputes, the battles have transitioned to a more legal context with investors at city hall. These investors, however, have been entangled in multi-million-dollar lawsuits, showcasing the value and intensity of the market. A significant reason for this high value is Menominee’s proximity to Wisconsin, where marijuana remains illegal, causing an influx of customers from across the border.
Menominee’s licensing process for marijuana businesses, initiated in October 2020, allowed for two recreational marijuana shops. After a competitive process, two businesses—Rize and the Fire Station—won the licenses in September 2021. This decision sparked legal battles as other businesses claimed the selection process was unfair. Despite the two businesses winning in court, the legal battles didn’t end there.
A central issue arose when the Menominee City Council, post-lawsuit, decided to modify its marijuana ordinance, essentially removing the cap on marijuana licenses. The change was driven by a settlement offer from the suing cannabis companies, and the council approved this agreement with a 6-3 vote.
Currently, the spotlight is on a lawsuit that accuses Menominee politicians and the benefiting marijuana companies of “civil conspiracy.” The lawsuit further claims that there were unethical backdoor dealings and communication between some councilmembers and lawyers of the cannabis companies, violating the attorney code of ethics.
A key revelation is the familial relationship between an attorney representing a marijuana business and a councilmember. Additional accusations suggest that another councilmember stood to financially benefit from sales of properties to cannabis businesses. As a result of the ordinance changes, local residents began a petition for a voter referendum, but the council found a way to circumvent it by tying the marijuana ordinance with a funding appropriation for the police department, making it “referendum-proof.”
Lastly, the situation has led to another lawsuit, alleging a violation of the Open Meetings Act and calling for nullification of the council’s actions. Experts, including an ethics professor from the University of Michigan, opine that the situation raises numerous ethical questions.
Why You Need Our Services at the Cannabis Licensing Law Firm:
The evolving legal landscape in the cannabis sector is intricate and fraught with both opportunities and pitfalls. As evidenced by the situation in Menominee, navigating the complexities of licensing, compliance, and local governance can be challenging. At the Cannabis Licensing Law Firm, we have the expertise and insight to guide businesses through these complexities, ensuring they’re both legally compliant and strategically positioned for success. Our deep understanding of the legal intricacies in the cannabis industry means we can help our clients avoid pitfalls, minimize legal battles, and thrive in this burgeoning market.
