18 of 22 provisional marijuana licenses transfer to 510 Savage Rd.

At a special budget meeting of the Belleville City Council on May 12, council members discussed the proposed 2021-22 budget via zoom. A public hearing was to be set to consider and approve the budget at 7:30 p.m., June 7.
During discussion on ways to get more money in the budget, Mayor Pro Tem Jesse Marcotte asked about revenue from the marijuana industry.
“So far, it’s fizzled out in the pan,” said DPW Director Rick Rutherford. “I don’t anticipate much, if any, revenue from them this budget cycle.”
Marcotte asked if applicants weren’t supposed to pay $5,000 per license.
Rutherford said, “What I’m seeing on the ground is that they’re spinning. No building going on.”
Clerk Verna Chapman said there is $5,000 application fee for provisional licenses and then $5,000 annual renewal fees once they are licensed by the state.
Clerk Chapman said the ones holding the licenses have not done the things necessary to be licensed by the state.
She said they start with a $100 application fee and if licensed by the state they would pay the remainder of $4,900.
“Any changes to the ordinance have to be by referendum since that’s how it was instituted,” said Councilman Ken Voigt.
“The application fee is not big deal,” Rutherford said.
City Manager/Police Chief Dave Robinson said the original applicants had purchase and lease agreements negotiated, but those fell through and 18 of the 22 licenses asked to be transferred to 510 Savage Rd. and, “We allowed the transfer.”
He said the applicants are preparing security and business plans and their attention now is to develop that site.
“The ordinance prevents us from issuing more licenses than we have,” Chief Robinson said. Robinson said every time he gets information, he takes it to the attorney and he’s following some current court cases, where there are suits by this organization.
“We can see what happens and then see if we can amend the ordinance,” Robsinson said.
He said in 2022, potentially the provisional license holders will be getting licenses from the state and then the city would get the $4,900 for each license. He said that new area actually is in the DDA district.
Councilman Voigt said he has made calls, but he hasn’t been able to find out how much the city would get from the state for excise tax.
“No marijuana revenue in this fiscal year,” Voigt said.
The proposed $2.7 million break-even budget contains a 32-hour-per-week ordinance officer with no benefits, a new deputy administrator position, a city manager/police chief position with time split 50/50, fire wage increases based on recent negotiations, and American Rescue Plan Stimulus of $384,600 put into the capital purchase fund to wait for final rules on how it can be used.