HomeMy WebLinkAboutCo-Located Adult Use Marijuana Retail Establishment and Medical Marijuana Dispensary RFQ_201901040851286919
TOWN of NANTUCKET
REQUEST FOR QUALIFICATIONS
Co-Located Adult Use Marijuana Retail Establishment and
Medical Marijuana Dispensary
NOTICE
The Town of Nantucket has voted to limit the number of Adult Use Marijuana Retail
Establishments (“Retail Establishments ”) to be located in the Town to 20% of the number of the
Town’s year-round all-alcoholic beverages package store licenses; therefore, the number of Retail
Establishments is limited to two (2) (pursuant to vote of October 10, 2018 Special Town
Meeting). The Select Board has entered into one Host Community Agreement (“HCA”) for a
Retail Establishment and one HCA for and one HCA and Letter of Support or Non-Opposition for
a Medical Marijuana Dispensary. The Select Board intends to enter into one additional HCA for a
Co-Located Adult Use Marijuana Establishment and Medical Marijuana Dispensary and issue one
additional Letter of Support or Non-Opposition for a Dispensary.
Accordingly, the Town of Nantucket Select Board, acting through its Town Manager, seeks
Requests for Qualifications (RFQ) from those interested in obtaining both an HCA, and a Letter of
Support or Non-Opposition to operate a co-located Medical Marijuana Dispensary and Adult Use
Marijuana Retail Establishment within the Town of Nantucket.
SUBMISSION OF PROPOSAL
To receive consideration, responses must be submitted in accordance with the following
instructions:
1. All response submittals shall be sealed and delivered to:
C. Elizabeth Gibson – Town Manager
16 Broad Street
Nantucket, MA 02554
2. Eight hard copies of the proposal must be submitted. Each copy shall be numbered 1 through 8
and:
-- in one binder (no stapling) with a Table of Contents listing each item of the Minimum
Criteria and Comparative Criteria of the RFQ, in numerical order;
-- clearly marked on the front “Co-located Adult Use Marijuana Retail and Medical Marijuana
Dispensary Request for Qualifications”;
-- available in electronic format, upon request.
3. Submitted by Friday, December 28, 2018 at 2:00 pm with a certified or bank check made out
to “Town of Nantucket” in the amount of $500.00;
4. Modifications to submissions may be submitted up to 24 hours prior to the date and time
specified for receipt of submissions;
5. The proposals will be opened publicly at the place and time designated for the submission of
proposals.
6 The Town reserves the right to reject any or all proposals, to waive any informalities in the
proposals, and to award a Host Community Agreement in a manner that best serves the interests of
the Town. Further, the Town reserves the right to cancel this RFQ at any time.
CO-LOCATED ADULT USE MARIJUANA RETAIL and MEDICAL MARIJUANA
DISPENSARY REQUEST FOR QUALIFICAITONS
INSTRUCTIONS TO APPLYING ENTITIES
I. INTRODUCTION AND BACKGROUND
The Town of Nantucket Select Board, acting through its Town Manager, seeks Requests for
Qualifications from those interested in operating a co-located Adult Use Marijuana Retail
Establishment and Medical Marijuana Dispensary within the Town of Nantucket.
Chapter 334 of the Acts of 2016, entitled, “Regulation and Taxation of Marijuana Act”, as amended
by Chapter 55 of the Acts of 2017, “An Act to Ensure Safe Access to Marijuana”,
and the Cannabis Control Commission regulations 935 CMR 500.000, allow the Town of Nantucket
to adopt local bylaws, regulations and policies concerning local licensing and permitting of Adult Use
Marijuana Establishments.
Chapter 94G Sec. 3: The “Local Control” policy includes the Town’s ability to determine the “the
time, place and manner” of marijuana operations. To set out to establish such “Local Control,” the
Town of Nantucket, through Town Meeting vote approved both a General Bylaw and Zoning Bylaw
determining a cap of no more than two (2) Adult Use Marijuana Retail Licenses shall be issued by the
Town of Nantucket through the Select Board.
Zoning Regulations adopted by Town Meeting vote address legal, planning, public safety issues, and
potential impacts of such facilities. The Nantucket Zoning Bylaws restrict the siting of Adult Use
Marijuana Retail Establishments and Medical Marijuana Dispensaries to a limited number of zoning
districts and designate the Planning Board as the Special Permit Granting Authority for these uses.
In this RFQ, the following definitions shall apply:
Applying Entity: The business entity and its affiliated officers, personnel, and controlling
persons, applying to the Town of Nantucket for an Adult Use Marijuana Retail License,
Medical Marijuana Dispensary Letter of Support or Non-opposition, Special Permit(s), Host
Community Agreement consideration and any other required local approvals.
Controlling Person: Officer, board member or other individual who has a financial or voting
interest of 10% or greater in a Marijuana Establishment or Medical Marijuana Dispensary.
II. PROPOSAL REQUIREMENTS
All proposals must include a check made out to the “Town of Nantucket” in the amount of $500.00
and provide cover letter to the attention of C. Elizabeth Gibson, Town Manager signed by a
Controlling Person legally authorized to bind the Applying Entity to its proposal. The letter shall
include a brief overview of the Applying Entity’s approach to operate a co-located Adult Use
Marijuana Retail Facility and Medical Marijuana Dispensary, with supporting documentation that
includes (in order specified below and numbered):
1. Name, DBA or business name; documentation of Massachusetts business registration; and
required certificates of good standing;
2. Proposed address for facility; proof of property interest/site control (i.e. deed, lease or NOI to
lease) and proof of the proposed location’s compliance with local zoning requirements, including
location within the permitted zoning district and compliance with required buffers;
3. Contact Information for primary point of contact(s) to discuss application issues;
4. Names and resumes of all executives, managers, persons, or entities (such as the Applying
Entity’s local Chief Executive Officer, Chief Financial Officer, Chief Operating Officer and Director
of Security) having direct or indirect authority over management, policies or security operations,
including description of prior cannabis experience for each, if applicable, and the following additional
information;
a. experience with growing and processing cannabis in Massachusetts or similar
climate conditions;
b. experience with growing and processing cannabis for targeted uses; testing and
inspecting cannabis products;
c. experience with counseling patients and non-patients on cannabis use,
including for medical and other conditions;
d. relationships with research entities, medical professionals;
e. experience with education and support programs, including community,
substance abuse prevention and mitigation, veterans support, hospice and disease
support;
f. experience with product control, diversion prevention, over-sale prevention;
g. experience working with local governments, schools and law enforcement;
h. experience working with local community groups and non-profits;
i. any ties to the Nantucket community;
5. Names of persons contributing more than 10% or more of capital to operate; and
description of prior cannabis experience if applicable;
6. Copies of articles of incorporation, bylaws and similar charter documents, as well as lists of
officers and directors of any and all current licensed or certified medical or adult-use locations,
entities or establishments, including those located in other state(s), where the Applying Entity, or any
affiliated persons, controls or otherwise has an interest in the license(s);
7. All persons listed in Item 4 above shall submit an affidavit certifying that they have no
outstanding or unresolved criminal proceeding, the disposition of which may result in a felony
conviction, and have not been convicted of a felony or offense in Massachusetts, or a felony or
offense in another state, that would result in Mandatory Disqualification or Presumption
Determination of Unsuitability as set forth in 935 CMR 500.801 Table A;
8. Proposed Timeline and Development Plan (building reuse, new build) to be
operational,
including local resources for building and opening facility;
9. Current Business Plan, including credit line, credit history, financing sources, financial records
that show current and proposed sources of funding sufficient to demonstrate financial stability to
ensure the Establishment’s solvency and successful operation with a seasonal market;
10. Plan for employee staffing – number and type of jobs created, expected wage range, and
potential benefit to the town;
11. List of locations where applicant already has establishment(s) in other Massachusetts
communities or has pending applications. List of locations in other states where applicant has applied
for or has secured licenses or permits to operate adult use retail or medical dispensary locations;
12. Plan demonstrating an ability to grow marijuana products locally and maintain supply of
locally grown product for sale;
13. Summary of any support of coop/craft grower programs, if any;
14. Proposal for any additional community benefits, including non-monetary goals and local
charitable benefits;
15. Copy of draft Massachusetts Cannabis Control Commission (MCCC) application for a
Marijuana Retailer license and any other applicable MCCC license applications for the proposed
location (e.g. marijuana cultivator or product manufacturer); and, all draft or completed submissions
to the Massachusetts Department of Public Health or MCCC (as applicable) for the Applying Entity’s
Medical Use of Marijuana Certificate of Registration, including all application materials and notices
of status change;
16. Traffic and parking plan, including for any overflow parking, emergency vehicle access,
pedestrian/bicycle access, loading/delivery capacity; and, traffic study if required pursuant to local
zoning;
17 Plans for exterior nuisance mitigation (including light, noise, emissions, odor, debris),
minimization of water use, wastewater treatment, use of renewable energy sources; fire safety,
recycling and handling of solid waste, security plan (for location, facility, interior environment, data
and products), and plan for testing of product(s);
18. Proposed design and marketing options for facility, packaging and signage;
19. Demonstrated willingness to sign draft HCA with minimum terms as set forth in the form of
the HCA attached to this RFQ.
III. EVALUATION PROCESS
Applying Entity must meet the following minimum application criteria to be considered:
1. The proposal must include all the information required in Section II of this RFQ.
2. The Applying Entity shall agree, at a minimum, to the terms of the draft HCA.
3. The proposed location of the co-located Establishment shall comply with the Town’s
current Zoning Bylaw requirements.
The following comparative evaluation criteria will be used to rank the applications received (that
have met the minimum criteria) using ratings that allow reviewers to evaluate the proposals based
on content and quality of the proposal components.
1. Knowledge and understanding of the Adult Use Marijuana Retail and Medical Marijuana
licensing procedures.
Highly Advantageous – Demonstrates a superior knowledge and understanding of the Adult Use
Marijuana Retail and Medical Marijuana Dispensary licensing procedures. The proposal is well
written, clearly and completely addresses the required supporting information, is comprehensive and
excels in its overall approach in displaying the ability to operate an Adult Use Marijuana Retail
facility and Medical Marijuana Dispensary in compliance with all rules and regulations.
Advantageous – Demonstrates a thorough knowledge and understanding of the Adult Use Marijuana
Retail and Medical Marijuana Dispensary licensing procedures. The proposal is well written, clearly
and completely addresses the required supporting information, is comprehensive and is adequate in its
overall approach in displaying the ability to operate an Adult Use Marijuana Retail facility and
Medical Marijuana Dispensary in compliance with all rules and regulations.
Not Advantageous – Demonstrates less than adequate knowledge and understanding of the Adult
Use Retail Marijuana Licensing and Medical Marijuana Dispensary procedures but is less than
comprehensive and is less than adequate in its approach to display the ability to operate an Adult Use
Marijuana Retail facility and Medical Marijuana Dispensary in compliance with all rules and
regulations.
2. Key Personnel and Prior Cannabis Experience
Highly Advantageous – RFQ has provided contact information for primary point of contact(s);
names of executives, managers, persons, or entities having direct or indirect authority over
management, policies or security operations and names of persons contributing more than 10% or
more of capital to operate, all of whom have prior experience in the cannabis industry.
Advantageous –RFQ has provided contact information for primary point of contact(s); Names of
executives, managers, persons, or entities having direct or indirect authority over management,
policies or security operations and names of persons contributing more than 10% or more of capital to
operate at least half of whom have prior experience in the cannabis industry.
Not Advantageous – RFQ has provided contact information for primary point of contact(s); Names
of executives, managers, persons, or entities having direct or indirect authority over management,
policies or security operations and names of persons contributing more than 10% or more of capitol to
operate, less than half of whom have prior experience in the cannabis industry.
3. Business Plan
Highly Advantageous – Business plan displays a superior amount of resources and staffing to
accomplish goals set forth in the Business Plan.
Advantageous – Business plan displays an adequate amount of resources and staffing to accomplish
goals set forth in the Business Plan.
Not Advantageous – Business plan displays a fair to limited amount of resources and staffing to
accomplish goals set forth in the Business Plan.
4. Proposed Timeline and Development Plan
Highly Advantageous – RFQ demonstrates the superior ability to meet or exceed the ability to
maintain the proposed timeline and development plan, including comprehensive understanding of the
process that will need to be followed to open as planned.
Advantageous – RFQ demonstrates moderate ability to maintain the proposed timeline and
development plan with some detail as to the process to be followed to open as planned.
Not Advantageous – RFQ does not display the ability to maintain the proposed timeline and
development plan.
5. Staffing, Jobs Creation - Potential Benefit to Community*
Highly Advantageous – RFQ outlines the potential to hire and house (with a realistic plan) a
majority of employees who permanently reside on the Island, and a commitment to hire locally
where possible.
Advantageous – RFQ outlines the potential to hire and house (with a realistic housing plan) a
minimum of some employees who permanently reside on the Island and will consider a
commitment to hire locally where possible and a plan for housing.
Not Advantageous – RFQ outlines the potential to hire more employees who live off-island than on-
island; with no commitment to hire locally, with no housing plan.
*In the event of a tie in ranking within this category, the Applying Entity with the higher number
of local residents as Controlling Persons will receive a preferential ranking.
6. Demonstration of Historical Local Residency, Community Involvement and/or Community
Support of the Applying Entity’s Affiliated Officers Personnel and Controlling Persons
Highly Advantageous – Provides documentation that a majority of the Applying Entity’s affiliated
officers, personnel and Controlling Persons have historical local residency on the island, with
substantial documented community involvement and can provide letters of support from community
groups, organizations or individuals vouching for the character and community commitment for a
majority of the Applying Entity’s members.
Advantageous – Provides documentation that between 25% and 50% of the Applying Entity’s
affiliated officers, personnel and Controlling Persons have historical local residency on the island,
with substantial documented community involvement and can provide letters of support from
community groups, organizations or individuals vouching for the character and community
commitment for between 25% and 50% of the Applying Entity’s members.
Not Advantageous – Provides documentation that less than 25% of the Applying Entity’s affiliated
officers, personnel and Controlling Persons have historical local residency on the island, with
substantial documented community involvement and can provide letters of support from community
groups, organizations or individuals vouching for the character and community commitment for less
than 25% of the Applying Entity’s members.
7. Proximity
It is the preference of the Town that the location of adult use marijuana retail establishments be spread
out across the Town and not clustered within in the same neighborhoods.
Highly Advantageous –The proposed co-located marijuana establishment will be located at a
distance greater than one mile (measured lot line to lot line) from any Adult Use Marijuana Retail
Establishment location for which the Select Board has previously executed an HCA.
Advantageous – The proposed co-located marijuana establishment will be located at a distance
greater than one half mile, but less than one mile (measured from lot line to lot line) from any adult
use marijuana retail establishment location for which the Select Board has previously executed an
HCA.
Not Advantageous – The proposed co-located marijuana establishment will be located at a distance
between 2000-feet and one-half mile (measured from lot line to lot line) from any adult use
marijuana retail establishment location for which the Select Board has previously executed an HCA.
8. Product Testing
Highly Advantageous – RFQ contains detailed description of the alternative testing protocols that
will be employed to achieve compliance with a majority of the state testing requirements as set forth
in 935 CMR 500.160 in a manner that clearly protect public health.
Advantageous – RFQ contains detailed description of the alternative testing protocols that will be
employed to achieve compliance with some state testing requirements as set forth in 935 CMR
500.160 in a manner that adequately protect public health.
Not Advantageous – RFQ contains description of the alternative testing protocols that will be
employed with little to no compliance with the state requirements as set forth in 935 CMR 500.160 to
the detriment of public health.
9. Traffic Management
The potential for high traffic generation associated with marijuana establishments is a concern to the
Town. The Town will give preference to applicants that can demonstrate multiple means of access.
Highly Advantageous – The proposed location of the co-located marijuana establishment is readily
accessible to multiple means of access, including sidewalks, bike trails and bus stops so that the
impact of traffic accessing the establishment will be minimized to the maximum extent feasible
Not Advantageous – The proposed location of the co-located marijuana establishment is not readily
accessible to multiple means of access, including sidewalks, bike trails and bus stops.
IV. RULES FOR AWARD
The Town will award the HCA and Letter of Support or-Non-Opposition to the proposal that is
deemed in the best interests of the Town taking into consideration the criteria for award set for in this
RFQ. The Town has established a Review Committee that will conduct a preliminary review of the
proposals and which will make a recommendation of award to the Select Board.
V. GENERAL INFORMATION
Selection Process
Additional information, interviews and or presentations may be required at the option of the Town. In
no event shall the Town, Select Board, or Town employees be liable for any costs incurred for the
preparation of and participation in the submission of responses to this request or subsequent interviews
of persons or companies. The most qualified will be invited to enter into a Host Community
Agreement for an Adult Use Marijuana Establishment and a Medical Marijuana Dispensary and
obtain a Letter of Support or Non-Opposition. Deposits will be returned to all applicants not deemed
qualified. The interviews and the evaluation process by both the Review Committee and the Select
Board shall be conducted in open session unless an executive session is warranted under the
circumstances.
Compliance with Rules
Applying Entities responding to this RFQ must follow its procedures and requirements. Failure to
comply with any portion of this RFQ may result in the rejection of your Proposal.
Proposal Withdrawal
Any proposal may be withdrawn at any time before the “Proposal Due” date and time by providing a
written request for the withdrawal to the Town Manager. A duly authorized representative of the
submitting entity shall make the request. Withdrawal of a Proposal will not preclude the Applying
Entity from filing a new proposal if it is submitted prior to the close date.
Ownership of Documents
Any material submitted by an Applying Entity shall become the property of the Town.
Public Record
All Applying Entities and information submitted by Applying Entities, except for the Security Plan
required under Section II.17 of this RFQ and any information of a personal nature, are open for public
inspection upon opening of the proposals. Applying Entities are advised to submit the Security Plan in
a separately sealed envelope and are further advised not to include any personal or highly sensitive
information in the proposal such as social security numbers or bank account and bank routing
information.
DRAFT MODEL HCA FOR CO-LOCATED ADULT USE MARIJUANA ESTABLISHMENT
AND MEDICAL MARIUANA TREATMENT CENTER
HOST COMMUNITY AGREEMENT FOR THE SITING OF A CO-LOCATEDADULT USE
MARIJUANA ESTABLISHMENT AND MEDICAL MARIJUANA TREATMENT CENTER IN
THE TOWN OF NANTUCKET
HOST COMMUNITY AGREEMENT
This Host Community Agreement (“Agreement”) is entered into this day of , 2019 by and
between the [NAME OF ENTITY] (“the Company”), and the Town of Nantucket, a Massachusetts
municipal corporation with a principal address of 16 Broad St, Nantucket, MA 02554 (the Town”),
acting by and through its Town Manager, in reliance upon all of the representations made herein.
WHEREAS, the Company wishes to locate a licensed Adult Use Marijuana Retailer, Marijuana
Cultivator, and Marijuana Product Manufacturer for the cultivation, processing, manufacturing of
marijuana products and retail sales of adult use marijuana, co-located with a Medical Marijuana
Treatment Center (the “Facility”) at [ADDRESS] Nantucket, Massachusetts 02554 in accordance with
and pursuant to applicable state laws and regulations, including, but not limited to G.L. c.94I, G.L.
c.94G and 935 CMR 500.00, as well as 935 CMR 501.00 and 935 CMR 502.00 and such approvals as
may be issued by the Town in accordance with its Zoning Bylaw and other applicable local
regulations, as may be amended; and
WHEREAS, the Company intends to provide certain benefits to the Town in the event that it receives
the requisite licenses from the Cannabis Control Commission or such other state licensing or
monitoring authority, as the case may be, to operate the Facility and receives all required local permits
and approvals from the Town;
WHEREAS, the parties intend by this Agreement to satisfy the provisions of G.L. c.94G, Section
3(d), applicable to the operation of the Facility, such activities to be only done in accordance with the
applicable state and local laws and regulations in the Town;
NOW THEREFORE, in consideration of the mutual promises and covenants set forth herein, and
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the Company and the Town agree as follows:
1. Recitals
The Parties agree that the above Recitals are true and accurate and that they are incorporated herein
and made a part hereof.
2. Annual Payments
In the event that the Company obtains the requisite licenses and/or approvals as may be required for
the operation of the Facility, and receives any and all necessary and required permits and licenses of
the Town, and at the expiration of any final appeal period related thereto, said matter not being
appealed further, which permits and/or licenses allow the Company to locate, occupy and operate the
Facility in the Town, then the Company agrees to provide the following Annual Payments:
A. Community Impact Fee
The Company anticipates that the Town will incur additional expenses and impacts on the Town’s
road and other infrastructure systems, law enforcement, fire protection services, inspectional services,
and permitting and consulting services, as well as unforeseen impacts on the Town. Accordingly, in
order to mitigate the financial impact on the Town and use of Town resources, the Company agrees to
pay an Annual Community Impact Fee to the Town, in the amount and under the terms provided
herein.
1. Company shall annually pay an Annual Community Impact Fee in an amount
equal to three percent (3%) of gross sales from marijuana and marijuana product sales
at the Facility, which shall include sales of marijuana or marijuana products for
medicinal use. The term “gross sales” shall mean the total of all sales transactions of
the Facility without limitation, whether wholesale or retail, and shall include but not be
limited to all adult use marijuana and medical marijuana sales occurring at the Facility,
including the sale of marijuana, marijuana infused products, paraphernalia, and any
other products sold by the Facility.
2. The Annual Community Impact Fee shall be made annually, within 30 days
following the end of each 12 months of operation, commencing on the first day of the
first full calendar month after the commencement of operations for any part of the
Facility used for either adult use marijuana or medical marijuana retail sales, and
continuing for a period of five (5) years. At the conclusion of each of the respective
five-year terms, the parties shall negotiate in good faith the terms of a new Annual
Community Impact Fee as an Amendment to this Agreement. Provided, however, that
if the parties are unable to reach an agreement on a successor Community Impact Fee,
the Annual Community Impact Fee specified in Paragraph 2.A.1 of this Agreement
shall remain in effect and shall not be reduced below the amount set forth above until
such time as the Parties negotiate a successor Community Impact Fee.
3. The Town shall use the above referenced payments in its sole discretion but
shall make a good faith effort to allocate said payments to offset costs related to road
and other infrastructure systems, law enforcement, fire protection services, inspectional
services, public health and addiction services and permitting and consulting services,
as well as unforeseen impacts upon the Town.
B. Annual Community Benefit Payments
In addition to the Annual Community Impact Fee, the Company shall additionally pay an Annual
Community Benefit Payment in accordance with the following:
1. Annual Community Benefit Payments: For as long as the Facility is in
operation, the Company shall pay to the Town the sum of $25,000 annually for
purposes of funding substance abuse and mental health services in the Town,
including, but not limited to school substance abuse and counselling services.
a. The Annual Community Benefit Payment shall be paid annually
within 30 days following the end of each 12 months of operation,
commencing on the first day of the first full calendar month after the
commencement of operations for any part of the Facility used for either
adult use or medical marijuana retail operations.
b. The parties hereby recognize and agree that the Annual
Community Benefit Payment to be paid by the Company shall not be
deemed an impact fee subject to the requirements or limitations set forth
in G.L. c.94G, §3(d).
C. Additional Costs, Payments and Reimbursements
1. Permit and Connection Fees: The Company hereby acknowledges and accepts,
and waives all rights to challenge, contest or appeal, the Town’s building permit
fee and other permit application fees, sewer and water connection fees, and all
other local charges and fees generally applicable to other commercial
developments in the Town.
2. Facility Consulting Fees and Costs: In addition to the Community Impact Fee,
the Company shall reimburse the Town for any and all reasonable consulting costs
and fees related to any land use applications concerning the Facility, negotiation of
this and any other related agreements, and any review concerning the Facility,
including planning, engineering, legal and/or environmental professional
consultants and any related reasonable disbursements at standard rates charged by
the above-referenced consultants in relation to the Facility. Provided, however, that
any upfront payment for such fees and costs shall be offset against the annual
payment of 3% of gross sales.
3. Other Costs: The Company shall reimburse the Town for the actual costs
incurred by the Town in connection with holding public meetings and forums
substantially devoted to discussing the Facility and/or reviewing the Facility and
for any and all reasonable consulting costs and fees related to the monitoring and
enforcement of the terms of this Agreement, including, but not limited to
independent financial auditors and legal fees. Provided, however, that any upfront
payment for such fees and costs shall be offset against the annual payment of 3%
of gross sales.
4. Police Officer Training: The Company shall reimburse the Town for the actual
cost incurred for a local police officer to complete Advanced Roadside Impairment
Driving Enforcement training program. Provided, however, that any upfront
payment for such fees and costs shall be offset against the annual payment of 3%
of gross sales.
5. Late Payment Penalty: The Company acknowledges that time is of the essence
with respect to their timely payment of all funds required under Section 2 of this
Agreement. In the event that any such payments are not fully made with ten (10)
days of the date they are due; the Town shall provide the Company with written
notice of such failure to make a timely payment. The Company shall have a ten
(10) day period to cure such failure to make timely payment from the date of
receipt of such notice. If the Company fails to make full payment within such cure
period, the Company shall be required to pay the Town a late payment penalty
equal to five percent (5%) of such required payments.
D. Annual Charitable/Non-Profit Contributions
The Company, in addition to any funds specified herein, shall annually contribute to the Town’s
Scholarship Committee an amount no less than $10,000. The annual Scholarship Committee
contribution shall be made annually beginning on the first anniversary following the commencement
of the operations and shall continue for the term of this Agreement.
E. Annual Reporting for Host Community Impact Fees and Benefit Payments
The Company shall submit annual financial statements to the Town within 30 days after the payment
of its Annual Community Impact Fee with a certification of its annual sales. The Company shall
maintain books, financial records, and other compilations of data pertaining to the requirements of
this Agreement in accordance with standard accounting practices and any applicable regulations or
guidelines of the CCC. All records shall be kept for a period of at least seven (7) years. Upon request
by the Town, the Company shall provide the Town with the same access to its financial records (to be
treated as confidential, to the extent allowed by law) as it is required by the CCC and Department of
Revenue for purposes of obtaining and maintaining a license for the Facility
During the term of this Agreement and for three years following the termination of this Agreement the
Company agrees that in the event the Town is unable to verify the Company’s gross sales and the
payment of the required amount of the annual Community Impact Fee, the Town may require the
Company to have its financial records examined, copied and audited by an Independent Financial
Auditor, the expense of which shall be borne by the Company, provided that such expense shall be
offset against the annual payment of 3% of gross sales. The Independent Financial Auditor shall
review the Company’s financial records for purposes of determining that the Annual Payments are in
compliance with the terms of this Agreement. Such examination shall be made not less than thirty
(30) days following written notice from the Town and shall occur only during normal business hours
and at such place where said books, financial records and accounts are maintained. The Independent
Financial Audit shall include those parts of the Company’s books and financial records which relate
to the payment and shall include a certification of itemized gross sales for the previous calendar year,
and all other information required to ascertain compliance with the terms of this Agreement. The
independent audit of such records shall be conducted in such a manner as not to interfere with the
Company’s normal business activities.
3. Local Vendors and Employment
To the extent such practice and its implementation are consistent with federal, state, and municipal
laws and regulations, the Company will make every effort in a legal and non-discriminatory manner
to give priority to local businesses, suppliers, contractors, builders and vendors in the provision of
goods and services called for in the construction, maintenance and continued operation of the Facility
when such contractors and suppliers are properly qualified and price competitive and shall use good
faith efforts to hire Town residents.
4. Local Taxes
At all times during the Term of this Agreement, property, both real and personal, owned or operated
by the Company shall be treated as taxable, and all applicable real estate and personal property taxes
for that property shall be paid either directly by the Company or by its landlord and neither the
Company nor its landlord shall object or otherwise challenge the taxability of such property and shall
not seek a non-profit or agricultural exemption or reduction with respect to such taxes.
Notwithstanding the foregoing, (i) if real or personal property owned, leased or operated by the
Company is determined to be non-taxable or partially non-taxable, or (ii) if the value of such property
is abated with the effect of reducing or eliminating the tax which would otherwise be paid if assessed
at fair cash value as defined in G.L. c. 59, §38, or (iii) if the Company is determined to be entitled or
subject to exemption with the effect of reducing or eliminating the tax which would otherwise be due
if not so exempted, then the Company shall pay to the Town an amount which when added to the
taxes, if any, paid on such property, shall be equal to the taxes which would have been payable on
such property at fair cash value and at the otherwise applicable tax rate, if there had been no
abatement or exemption; this payment shall be in addition to the payment made by the Company
under Section 2 of this Agreement.
5. Security
To the extent requested by the Town’s Police Department, and subject to the security and architectural
review requirements of the CCC, or such other state licensing or monitoring authority, as the case
may be, the Company shall work with the Town’s Police Department in determining the placement of
exterior security cameras.
The Company agrees to cooperate with the Police Department, including but not limited to periodic
meetings to review operational concerns, security, delivery schedule and procedures, cooperation in
investigations, and communications with the Police Department of any suspicious activities at or in
the immediate vicinity of the Facility, and with regard to any anti-diversion procedures.
To the extent requested by the Town’s Police Department, the Company shall work with the Police
Department to implement a comprehensive diversion prevention plan to prevent diversion, such plan
to be in place prior to the commencement of operations at the Establishment.
The Company shall promptly report the discovery of the following to Town Police within 24 hours of
the Company becoming aware of such event: diversion of marijuana; unusual discrepancies identified
during inventory; theft; loss and any criminal action; unusual discrepancy in weight or inventory
during transportation; any vehicle accidents, diversions, losses, or other reportable incidents that
occur during transport; any suspicious act involving the sale, cultivation, distribution, processing, or
production of marijuana by any person; unauthorized destruction of marijuana; any loss or
unauthorized alteration of records related to marijuana, registered qualifying patients, personal
caregivers, or dispensary agents; an alarm activation or other event that requires response by public
safety personnel; failure of any security alarm system due to a loss of electrical power or mechanical
malfunction that is expected to last longer than eight hours; and any other breach of security.
6. Community Impact Hearing Concerns
The Company agrees to employ its best efforts to work collaboratively and cooperatively with its
neighboring businesses and residents to establish written policies and procedures to address mitigation
of any reasonable concerns or issues that may arise through its operation of the Facility, including, but
not limited to any and all reasonable concerns or issues raised at the Company’s required Community
Outreach Meeting relative to the operation of the Facility; said written policies and procedures, as
may be amended from time to time, shall be reviewed and approved by the Town and shall be
incorporated herein by reference and made a part of this Agreement, the same as if each were fully set
forth herein.
7. Additional Obligations
The obligations of the Company and the Town recited herein are specifically contingent upon the
Company obtaining a license for operation of the Facility in the Town, and the Company’s receipt of
any and all necessary local approvals to locate, occupy, and operate the Facility in the Town.
This agreement does not affect, limit, or control the authority of Town boards, commissions, and
departments to carry out their respective powers and duties to decide upon and to issue, or deny,
applicable permits and other approvals under the statutes and regulations of the Commonwealth, the
General and Zoning Bylaws of the Town, or applicable regulations of those boards, commissions, and
departments or to enforce said statutes, bylaws and regulations. The Town, by entering into this
Agreement, is not thereby required or obligated to issue such permits and approvals as may be
necessary for the Facility to operate in the Town, or to refrain from enforcement action against the
Company and/or the Facility for violation of the terms of said permits and approvals or said statutes,
bylaws, and regulations.
8. Electrical Usage and Renewable Energy Requirements
The Company shall (a) satisfy all minimum energy efficiency and equipment standards established by
the Cannabis Control Commission and meet all applicable environmental laws, regulations, permits,
and other applicable approvals; (b) adopt and use best management practices as determined by the
Cannabis Control Commission’s Energy and Environmental Working Group within 6 months of the
issuance of any such standards to reduce energy usage and consumption and engage in energy
conservation; and (c) ensure that lighting power densities for cultivation spaces does not exceed an
average of 36 watts per gross square foot of active and growing canopy. Additionally, the Company is
committed to utilizing LED lighting, at a minimum, for the vegetative and flowering phases of its
cultivation operations. The Company agrees to enroll in the Nantucket “PowerChoice Green”
municipal electric aggregation program, which supplies a 100% renewable power product and
contributes to the local solar rebate program.
The Company shall report to the Energy Office annually on its energy use through an Energy Use
Disclosure and shall include in its annual report to the Select Board a summary of its ongoing
strategies to further reduce electrical demand.
9. Water Consumption
The Company shall use best efforts to minimize water consumption at the Facility. Water
consumption techniques shall include: (a) a commitment to utilizing hand watering techniques to
ensure plants only receive the minimum amount of water needed for each plant; (b) a commitment to
not engaging in water intensive cultivation methods such as ebb and flood hydroponic cultivation; and
(c) installation of dehumidifiers in each room where cultivation occurs to collect and reuse moisture
evaporating from plants resulting in reclamation of significant quantities of water.
10. Waste and Waste Water Controls
The Company shall ensure that all recyclables and waste, including organic waste composed of or
containing finished marijuana and marijuana products, shall be stored, secured, and managed in
accordance with applicable state and local statutes, ordinances, and regulations. Liquid waste
containing marijuana or by-products of marijuana processing shall be disposed of in compliance with
all applicable state and federal requirements, including but not limited to, for discharge of pollutants
into surface water or groundwater (Massachusetts Clean Waters Act, M.G.L. c. 21 §§ 26-53; 314
CMR 3.00: Surface Water Discharge Permit Program; 314 CMR 5.00: Groundwater Discharge
Program; 314 CMR 12.00: Operation Maintenance and Pretreatment Standards for Wastewater
Treatment Works and Indirect Dischargers; the Federal Clean Water Act, 33 U.S.C. 1251 et seq., the
National Pollutant Discharge Elimination System Permit Regulations at 40 CFR Part 122, 314 CMR
7.00: Sewer System Extension and Connection Permit Program), or stored pending disposal in an
industrial wastewater holding tank in accordance with 314 CMR 18.00: Industrial Wastewater
Holding Tanks and Containers.
Additionally, the Company shall pay to have a Deduct Meter installed at the Facility in order to
monitor the municipal wastewater discharge at the Facility. The Company shall exclusively use
organic or natural cultivation processes to limit the risk of cultivation-related pollutants and
contaminants from being discharged into surface water and groundwater. Company shall utilize
cultivation processes such as hand watering of plants and use of dehumidification systems to ensure
that there is no wastewater discharged as part of the cultivation at the Facility. Company agrees to
consult with the Nantucket Sewer Department regarding its cultivation methods and wastewater plan
prior to commencing cultivation at the Facility or in the event of a change of the Company’s
cultivation practices that may result in wastewater discharge at the Facility. Company shall comply
with all reasonable requests of the Nantucket Sewer Department, including, but not limited to, testing
requirements and tank holding requirements if necessary.
Organic material, recyclable material and solid waste generated at the Facility shall be redirected or
disposed of as follows:
i. Organic material and recyclable material shall be redirected from disposal in
accordance with the waste disposal bans described at 310 CMR 19.017;
ii. To the greatest extent feasible, any recyclable material as defined in 310 CMR
16.02 shall be recycled in a manner approved by the Cannabis Control Commission
and any remaining marijuana waste shall be ground and mixed with other organic
material as defined in 310 CMR 16.02 such that the resulting mixture renders the
marijuana unusable for its original purpose. Once such marijuana waste has been
rendered unusable, the mixture may be composted or digested at an aerobic or
anaerobic digester at an operation that is in compliance with the requirements of 310
CMR 16.00.
The Company shall ensure that solid waste containing cannabis waste generated at the Facility is
ground up and mixed with solid wastes such that the resulting mixture renders the cannabis unusable
for its original purposes. Once such cannabis waste has been rendered unusable, it will be brought to a
solid waste transfer facility or a solid waste disposal facility (e.g., landfill or incinerator) that holds a
valid permit issued by the Department of Environmental Protection.
The Company will ensure that no fewer than two agents witness and document how the marijuana
waste is disposed or otherwise handled (recycled, composted, etc.) in accordance with 935 CMR
500.105(12). When marijuana products or waste is disposed or handled, the Company will create and
maintain a written or electronic record of the date, the type and quantity disposed or handled, the
manner of disposal or other handling, the location of disposal or other handling, and the names of the
two Company agents present during the disposal or other handling, with their signatures. The
Company shall keep these records for at least three years.
11. Odor Control Technology
The Company shall ensure that odor from the Facility does not constitute a nuisance to surrounding
properties. Subject to review and approval by the Planning Board as part of the Special Permit
process, the Company shall, at a minimum, utilize a closed air system at the Facility to not relive or
introduce any outdoor air into the Facility, nor allow any indoor air to escape. The Company shall
utilize high capacity activated carbon filter fans to constantly recirculate the air and remove odors and
harmful volatile organic compounds (VOCs) from the Facility. The Company shall ensure proper
maintenance of all odor mitigation equipment and will replace carbon filters in a timely manner
according to manufacturer recommendations to ensure maximum efficiency. The Planning Board
may impose additional odor control requirements as part of the Special Permit.
12. Traffic Management
The Company agrees at its own expense to employ a police detail, if deemed necessary by the Town,
to manage traffic at the site. In the event that there is traffic queuing at the Facility which cannot be
accommodated through existing parking and police detail, the Company shall provide off-site parking
and shuttle service to the Facility to alleviate traffic issues.
13. Limitations on Use
The Company agrees that, even if authorized under CCC regulations, it will not engage in delivery of
adult use marijuana directly to consumers, or on-site social consumption absent approval from the
Select Board.
The Company agrees that it will not produce or sell items for medical use that resemble or are in the
form of candy, such as lollipops, “gummi bears,” jelly beans, or similar products.
The Company additionally agrees that all edible marijuana products for adult use consumption in the
form of candy or other confections shall meet the requirements of 935 CMR 500.105(5) and shall
additionally be submitted to the Board of Health for review and comment on the form of the product
prior to being marketed or sold by the Facility.
The Company agrees that all marijuana and marijuana products sold in its marijuana retail
establishment shall be cultivated, processed and manufactured on Nantucket.
14. Re-Opener/Review
The Company or any “controlling person” in the Company, as defined in 935 CMR 500.02, shall be
required to provide to the Town notice and a copy of any other Host Community Agreement entered
into for any establishment in which the Company, or any controlling person in the Company, has any
interest and which is licensed by the CCC as the same type of establishment as the entity governed by
this agreement.
In the event the Company or any controlling person enters into a Host Community Agreement for a
marijuana retail establishment, a marijuana cultivation establishment and/or a marijuana product
manufacturing establishment with another municipality in the Commonwealth that contains financial
terms resulting in payments of a Community Impact Fee or other payments totaling a higher
percentage of gross sales for the same type of establishment than the Company agrees to provide the
Town pursuant to this Agreement, then the parties shall reopen this Agreement and negotiate an
amendment resulting in financial benefits to the Town equivalent or superior to those provided to the
other municipality.
15. Support
The Town agrees to submit to the CCC, or such other state licensing, registering or monitoring
authority, as the case may be, the required certifications relating to the Company’s application for a
license or certificate of registration to operate the Facility where such compliance has been properly
met, but makes no representation or promise that it will act on any other license or permit request,
including, but not limited to any zoning application submitted for the Facility, in any particular way
other than by the Town’s normal and regular course of conduct and in accordance with its rules and
regulations and any statutory guidelines governing them.
16. Term
Except as expressly provided herein, this Agreement shall take effect on the date set forth above, and
shall be applicable for as long as the Company operates the Facility or any of its licensed components,
including adult use marijuana cultivation, marijuana product manufacturing or marijuana retail
operations and any components of a registered Medical Marijuana Treatment Center in the Town,
with the exception of the Community Impact Fee as set forth in Section 2 herein, which shall be
subject to the five (5) year statutory limitations of G.L. c.94G, §3(d).
In the event the Company has not secured a final license and certificate of registration from the CCC
and all necessary local permits from the Town for both the adult use and medical marijuana
operations and commenced both adult use and medical marijuana operations at the Facility within two
years from the date this Agreement takes effect, this Agreement shall expire and the Company shall
be required to negotiate a new Host Community Agreement in order to operate the Facility within the
Town. The Select Board, in its discretion, may agree to an extension of the two-year expiration, for
good cause, which shall include the time required to pursue or await the determination of an appeal of
the special permit or other legal proceeding.
17. Annual Reporting
The Company shall file an annual written report with the Select Board in connection with its annual
financial submissions each year for purposes of reporting on compliance with each of the terms of this
Agreement and shall, at the request of the Select Board, appear at a regularly scheduled meeting to
discuss the Company’s Annual Report.
18. Successors/Assigns
The Company shall not assign, sublet, or otherwise transfer its rights nor delegate its obligations
under this Agreement, in whole or in part, without the prior written consent from the Town, and shall
not assign any of the monies payable under this Agreement, except by and with the written consent of
the Town and shall not assign or obligate any of the monies payable under this Agreement, except by
and with the written consent of the Town. This Agreement is binding upon the parties hereto, their
successors, assigns and legal representatives. Neither the Town nor the Company shall assign, sublet,
or otherwise transfer any interest in the Agreement without the written consent of the other. Any
consent by the Town herein shall be at the sole discretion of the Town. In exercising its discretion,
the Town may require that the assignee, transferee, or successor entity submit all the relevant
information that was required by the Town in the initial RFQ and reserves the right to require such
additional information as the Town deems necessary.
Events deemed an assignment include, without limitation: (i) Company’s final and adjudicated
bankruptcy whether voluntary or involuntary; (ii) the Company’s takeover or merger by or with any
other entity; (iii) the Company’s outright sale of assets and equity, majority stock sale to another
organization or entity for which the Company does not maintain a controlling equity interest; (iv) or
any other change in ownership or status of the Company; (v) any assignment for the benefit of
creditors; and/or (vi) any other assignment not approved in advance in writing by the Town.
19. Notices
Any and all notices, consents, demands, requests, approvals or other communications required or
permitted under this Agreement, shall be in writing and delivered by hand or mailed postage prepaid,
return receipt requested, by registered or certified mail or by other reputable delivery service, and
shall be deemed given when so delivered by hand, if so mailed, when deposited with the U.S. Postal
Service, or, if sent by private overnight or other delivery service, when deposited with such delivery
service.
To Town:
Town Manager, Town of Nantucket
16 Broad Street
Nantucket, MA 02554
Facsimile: 508-228-7272
To Company:
20. Severability
If any term of condition of this Agreement or any application thereof shall to any extent be held
invalid, illegal or unenforceable by a court of competent jurisdiction, the validity, legality, and
enforceability of the remaining terms and conditions of this Agreement shall not be deemed affected
thereby unless the Town would be substantially or materially prejudiced. Further, the Company
agrees that it will not challenge, in any jurisdiction, the enforceability of any provision included in
this Agreement; and to the extent the validity of this Agreement is challenged by the Company in a
court of competent jurisdiction, the Company shall pay for all reasonable fees and costs incurred by
the Town in enforcing this Agreement.
21. Governing Law
This Agreement shall be governed by, construed and enforced in accordance with the laws of the
Commonwealth of Massachusetts, and the Company submits to the jurisdiction of any of its
appropriate courts for the adjudication of disputes arising out of this Agreement.
22. Entire Agreement
This Agreement, including all documents incorporated herein by reference, constitutes the entire
integrated agreement between the Company and the Town with respect to the matters described
herein. This Agreement supersedes all prior agreements, negotiations and representations, either
written or oral, and it shall not be modified or amended except by a written document executed by the
parties hereto.
23. Amendments/Waiver
Amendments, or waivers of any term, condition, covenant, duty or obligation contained in this
Agreement may be made only by written amendment executed by all signatories to the original
Agreement, prior to the effective date of the amendment.
24. Headings
The article, section, and/or paragraph headings in this Agreement are for convenience of reference
only, and shall in no way affect, modify, define or be used in interpreting the text of this Agreement.
25. Counterparts
This Agreement may be signed in any number of counterparts all of which taken together, each of
which is an original, and all of which shall constitute one and the same instrument, and any party
hereto may execute this Agreement by signing one or more counterparts.
26. Signatures
Facsimile signatures affixed to this Agreement shall have the same weight and authority as an original
signature.
27. No Joint Venture
The Parties hereto agree that nothing contained in this Agreement or any other documents executed in
connection herewith is intended or shall be construed to establish the Town, or the Town and any
other successor, affiliate or corporate entity as joint ventures or partners.
28. Nullity
This Agreement shall be null and void in the event that the Company does not locate the Facility in
the Town or relocates the Facility out of the Town. Further, in the case of any relocation out of the
Town, the Company agrees that an adjustment of Annual Payments due to the Town hereunder shall
be calculated based upon the period of occupation of the Facility within the Town, but in no event
shall the Town be responsible for the return of any funds provided to it by the Company.
29. Indemnification
The Company shall indemnify, defend, and hold the Town harmless from and against any and all
claims, demands, liabilities, actions, causes of actions, defenses, proceedings and/or costs and
expenses, including attorney’s fees, brought against the Town, their agents, departments, officials,
employees, insurers and/or successors, by any third party arising from or relating to the development
of the Property and/or Facility. Such indemnification shall include, but shall not be limited to, all
reasonable fees and reasonable costs of attorneys and other reasonable consultant fees and all fees and
costs (including but not limited to attorneys and consultant fees and costs) shall be at charged at
regular and customary municipal rates, of the Town’s choosing, incurred in defending such claims,
actions, proceedings or demands. The Company agrees, within thirty (30) days of written notice by
the Town, to reimburse the Town for any and all costs and fees incurred in defending itself with
respect to any such claim, action, proceeding or demand.
30. Third-Parties
Nothing contained in this agreement shall create a contractual relationship with or a cause of action in
favor of a third party against either the Town or the Company.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first
written above.
TOWN OF NANTUCKET THE COMPANY
__________________________________ __________________________________
C. Elizabeth Gibson
Town Manager President