MENOMINEE, MI — Since December, things had seemingly stabilized in a years-long marijuana turf war in the lakefront border town of Menominee in Michigan’s Upper Peninsula.
But recent developments reveal the conflict is far from over.
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Allegations of unethical politics and lawsuits surround efforts by eight marijuana companies to operate in the 8,300-resident town on the Wisconsin border. The marijuana retailers hope to capitalize on lucrative sales to out-of-state pot pilgrims, mostly from Wisconsin where marijuana remains illegal.
Multiple lawsuits are pending related to the matter. Currently, five marijuana shops are operating. Three more have announced plans to do the same. One of those shops, Green Pharm, plans to open “very soon,” according to the business’s attorney, Brian Etzel, who declined to elaborate further.
Two marijuana companies, Rize and the Fire Station, who are suing Menominee over claims the city council violated the Open Meetings Act in its effort to expand the city’s cannabis market, submitted a settlement offer last week but it was rejected by the Menominee City Council.
“We thought we had a deal … and we were surprised that the city council did what it did,” said attorney Michael Cox, who represents First Property Holdings, the owner of Rize marijuana stores.
Before the meeting during which the deal was rejected, Menominee City Councilman Michael DeDamos told MLive the rest of council “made it pretty clear that it was a no-go.”
Matthew Cross, an attorney representing Menominee, said settlement negotiations are ongoing.
Nirvana Center, a recreational cannabis shop located at 1231 9th Ave, in Menominee, Michigan on Wednesday, Oct. 11, 2023. Joel Bissell | Jbissell@mlive.com
The battle began in 2021, after Menominee officials, following a competitive application process, issued two marijuana retailer licenses to Rize and the Fire Station.
Multiple businesses that didn’t win licenses filed lawsuits claiming the selection process was flawed. Those lawsuits were later consolidated.
Menominee 41st Circuit Court Judge Mary Barglind dismissed the lawsuit in May, but the suing businesses convinced the majority of Menominee City Council to enter a settlement agreement that guaranteed six new marijuana licenses to the challenging businesses, and uncapped limits on future marijuana retail licenses.
The move led the originally licensed stores to sue, claiming the market expansion was unfair, in part, since Rize and the Fire Station developed business plans and invested based on the premise that they would be the only stores in town.
“This lawsuit was brought for one reason: Rize and Fire Station wanted a monopoly in the southern U.P.,” said attorney Denise Policella, who represents the Nirvana Center, which opened following the settlement agreement. Menominee “and the communities in the area all benefit from healthy competition, and the tax revenue and economic development that it brings.
“We are hopeful that the litigation can be concluded so that we can all focus our efforts and resources on the community instead of on legal fees.”
A map with pins showing where customers have come from at Glazed and Confused recreational marijuana shop in Mastodon Twp., Michigan on Tuesday, Oct. 10, 2023. The store located at 2465 on U.S. 2 is less than a mile from the Wisconsin border where marijuana is illegal. Joel Bissell | Jbissell@mlive.com
While Rize and the Fire Station fight to keep the competition away, discussion is swirling about whether Rize and Fire Station should be allowed to remain open themselves.
The “city’s permit renewal application for all facilities requires signing a statement that prevents any facilities from bringing or continuing a lawsuit against the city,” said opposing attorney Policella with the Nirvana Center. “Neither Rize nor Fire Station, to our knowledge, has submitted a renewal application that was due weeks ago.”
Councilman DeDamos said Mayor Casey Hoffman, who has not responded to multiple MLive requests for comment, has publicly threatened the possibility of “pulling” the Rize and Fire Station licenses.
“I think most of city council would rather not see the stores get closed,” DeDamos told MLive. “People have jobs, they rely on well-paying jobs; we’d rather not see that happen, so we were all a little shocked when (the mayor) said we’re starting to revoke licenses.
“All of us on council didn’t even know that was on the table.
Cox, who represents Rize, said the power and decision to issue or withhold renewal licenses is not the mayor’s.
“The fact that he shoots his mouth off does not give him any more authority or power than any of the other eight … council members,” he said. “We have filed our renewal applications as required by Menominee’s ordinance with the city manager, who under the charter and ordinances is the appropriate authority.”
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Attorney Cross, who represents Menominee, said, “comments made publicly by other marijuana companies grossly oversimplifies the language of the ‘checkbox’ at issue and its applicability to the currently pending claims.”
DeDamos said if there is licensing action taken against Rize and the Fire Station, due their ongoing litigation, it should also apply to the other operating marijuana shops that have pending lawsuits in the state Court of Appeals.
Attorneys involved in the ongoing lawsuit are scheduled to appear in Menominee’s 41st Circuit Court on March 20 to sort out issues related to discovery. A trial is scheduled for May 17.
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