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The Detroit suburb Redford effectively encouraged the campout by promising to grant permits on a “first come, first serve” basis.

This story has been republished by permission. Crain’s Detroit Business

The process of applying for a retail marijuana license in one of the few communities in metro Detroit to do so is a war.

For three weeks, dozens of applicants have been waiting in line outside the Redford Township Hall on Beech Daly Road.

The cannabis company operators are vying to secure a license to open a dispensary in Redford, which approved an ordinance to allow for marijuana sales over the summer and decided on a first-come-first-serve process for applications, which effectively incentivized operators get in line last month – and stay there – in hopes of securing one of the valuable licenses.

Nick Hannawa is the chief legal counsel at Troy-based Puff Cannabis Co. He told Crain’s that “it’s inhumane”.

Redford Township representatives did not respond to questions about the process. The township was scheduled to begin accepting applications on Thursday at 9 a.m.

The rules of the township allowed applicants to use folding camping chairs but prohibited cots, sleeping on the floor or tents. Redford’s temperature was 48 degrees last evening.

While waiting in line, applicants told Crain’s on Thursday morning that they would walk to nearby Exxon and Shell gas stations for the bathroom.

The majority of people in the line were hired line-sitters. They held spots for their employers or whatever marijuana operators had paid them to be present. The sitters worked shifts for the last three weeks.

Aric Klar, CEO at Birmingham-based Quality Roots who took over the company’s place in line on Thursday morning, revealed that he has spent $22,000 in wages for employees to work shifts in line since September 11.

Hannawa, the city’s licensing and planning officer, arrived at the city hall on Thursday to submit the company documents.

Steve Kiousis, the managing partner of Troy-based Kiousis Law PC, and Zaza Cannabis Co. representative, was also on site to turn in documents. Zaza employees secured 17th spot after arriving on September 23.

In an interview with WXYZ Redford Township Clerk Gary Christie stated that he had not expected the lineup to happen.

“I was surprised when I saw it,” Christie Telling WXYZ Sept. 19,. “I expected to see them here in mid-October.”

Opportunity to earn money in one of the last remaining communities

Redford Township, one of the last communities in Southeast Michigan that allows marijuana sales, is expected to have a lot of operators. A license to operate within its borders could be lucrative. The suburb borders Southfield and Detroit.

Klar, the CEO of Quality Roots (which operates eight dispensaries in the state) was in line to talk to Crain’s when he received a call from another operator offering $200,000 for Quality Roots’ position in line. He declined.

State law requires that municipalities make selections using a competitive process, which is usually a scoring system. This is often based on an applicant’s capacity to invest in curb-appeal or sustainable operations. Some communities, such as Garden City, Westland, and Harper Woods, have used the first-come-first-served method of accepting applications. Theoretically, one could argue that standing in line for weeks is competitive.

In Harper Woods, the process devolved to a display of athletic prowess. This is similar to how disputes are settled in playgrounds: With a footraceThe applicants were not allowed to arrive until the day the applications would be received, but they had to wait in the lot until a certain time to queue up for the three licenses available. The applicants then ran to get their place in line. At least one applicant was knocked over.

Redford Township has a zoning system that limits the number of licenses, but not by a numerical limit.

Zoning limits licenses to 12

The township has divided the dispensaries or locations available into a few overlay districts along 7 Mile, Inkster and Plymouth roads. The applicants must have owned or leased property in any of these districts when they submitted their application on Thursday.

The applicants may be removed from the competition if a license is granted to another applicant who was in front of them due to proximity. The township ordinance requires that dispensaries be at least 2,500 ft apart.

Crain’s calculations show that there are only 12 licenses possible within the roughly 30,000 square feet of dispensary space available in the overlay zones.

Hannawa said that building owners in the area were asking for $25,000 per month as a holding fee to hold properties while cannabis operators went through the application process.

He said that Puff Cannabis had a property on Telegraph Road under contract.

The applicants in line on Thursday wondered aloud how long it would be before the process in Redford Township led to lawsuits against the municipality, as many in this region have been fighting lawsuits over the selection process for licenses.

Last year, there were dozens of lawsuits against municipalities including Royal Oak, Warren and Pontiac. Plaintiffs claim that the city’s licensing process is unfair.

It is unclear when licenses will be awarded.

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