(a) A person seeking a City permit to operate a medical marihuana facility pursuant to the provisions of this chapter shall submit an application to the City Clerk on forms provided by the City. At the time of permit application submission, each applicant shall pay the nonrefundable application fee as established by City resolution. The City shall accept only one application, per applicant, per location. Applications must be timely submitted and no later than fourteen days after the effective date of the ordinance for the first license. In the event new licenses for medical marihuana facilities become available per ordinance, applications must be submitted fourteen days after the effective date of the adoption of amendments to the ordinance allowing for additional medical marihuana facilities.
(b) Applications will only be accepted from those applicants that have been prequalified by the State of Michigan for a marihuana facility license. Proof of prequalification shall be submitted with the license application.
(c) Upon an applicant's submission of the above-provided form, the City Clerk shall accept the application for review and consideration and assign it an application number. Only one permit application, per applicant, will be accepted for consideration for a single location. NO APPLICATION WILL BE SCORED AND REVIEWED UNLESS IT IS COMPLETE.
(d) If the City Clerk identifies a deficiency in the completeness of an application, the applicant shall have ten days to correct the deficiency after notification by the City Clerk. The application will be considered withdrawn on the eleventh business day if correction was not made.
(e) In the event the City receives more eligible applications for a specific type of city license than is authorized by the City, the City shall select the applicant or applicants most suitable to operate its facility based on an objective and competitive process. This process is subject to the provisions of this Section. This process is only necessary if the City receives more eligible applications than is authorized for any given type of medical marihuana facility.
(f) The City shall assess, evaluate, score, and rank all impacted applications and issue city licenses to those applicants receiving the highest score. In its application assessment, evaluation, scoring, ranking, and deliberations, the City shall assess, evaluate, score, and rank each application based upon a scoring and ranking procedure developed by the City consistent with the requirements, conditions, and provisions of this Section. The detailed scoring and ranking system shall be provided to each applicant and included in the application materials developed by the City.
(g) Initial scoring and ranking shall be conducted and applied by the City on the basis of assigned points from zero (0) points to 110 points with the lowest overall total score as zero points and the highest possible total score being 110 points. Scoring categories include, and are limited to the following scoring points and criteria:
(1) The content and sufficiency of the information provided by applicant in the application. The maximum number of scoring points in this category shall be five points.
(2) Whether the majority stakeholder of the applicant is a resident in the 48423 Zip Code. The maximum number of scoring points in this category shall be twenty points.
(3) Whether the majority stakeholder of the applicant can provide proof of ownership of another Davison-area business(es) within the last eight months. For the purposes of this criterion, “Davison-area” means with a three mile radius of the City limits. The maximum number of scoring points in this category shall be twenty points.
(4) Whether the applicant intends to operate its marihuana facility on presently undeveloped property in the City. The maximum number of scoring points in this category shall be ten points.
(5) The business probity, moral reputation, and relevant criminal history of applicant or any of its stakeholders; whether the applicant or any of its stakeholders have a record of acts detrimental to the public health, security, safety, morals, good order, or general welfare prior to the date of the application; whether the applicant or any of its stakeholders have any other professional licenses, including by way of example, but not limited to, such licenses as a medical doctor, lawyer or accountant; and whether the applicant (including all owners or stakeholders) can attest and demonstrate that it is not in default to the City or the State of Michigan. The maximum number of scoring points in this category shall be five points.
(6) Whether the applicant has provided a robust patient education plan that provides guidance and information to medical marihuana patients regarding the risks and benefits of medicinal marihuana products, including hemp-based products. The maximum number of scoring points in this category shall be five points.
(7) Whether the applicant has provided a comprehensive and financially-supported community improvement plan focusing on community improvement and outreach that demonstrates commitment to the City and the surrounding community through a signed agreement with the City. Community improvement and outreach on behalf of the applicant or its stakeholders may include, but are not limited to significant physical improvements to the area around the property or other areas contiguous to the property that would include, but not be limited to, plans to eliminate or minimize traffic, noise, and odor effects on the surrounding neighborhood and improve the surrounding neighborhood and area. Community improvement and outreach may also include plans to make significant physical improvements to other local private or public roads, rights-of-way, alleys, parks or any other private or public property that would benefit the surrounding area. The maximum number of scoring points in this category shall be ten points.
(8) Whether the applicant's proposed use is consistent with the land use for the surrounding neighborhood and will not have a detrimental effect on traffic patterns, health, welfare or safety of residents or abutting properties. The maximum number of scoring points in this category shall be ten points
(9) The number of full-time and part-time positions anticipated by applicant, and whether applicant has articulated plans or strategies to attract, hire and retain employees that are residents of the City. Whether applicant has articulated plans or strategies in providing competitive compensation, benefits or educational programs to its employees. The maximum number of scoring points in this category shall be ten points.
(10) Whether applicant has planned and financially-supported community outreach to the City and its residents. This includes, but is not limited to, planned outreach or educational services, charitable or philanthropic activity, community improvement or educational programs, or other factors that will improve the health, safety, and welfare of the City, its residents, and the surrounding area. The maximum number of scoring points in this category shall be fifteen points.
(h) The City may engage professional expert assistance in performing the City's duties and responsibilities under this Section.
(i) After the City has processed and scored all eligible applications, the City shall prepare a summary and report listing the overall score and basis for this determination for all eligible applications. The City shall then notify the selected pplicants of the granting or denial of a license. An application must have a minimum of eighty points for it to be considered for the lottery. Those not achieving the minimum score will be deemed ineligible for the lottery described in Section 810.05(l), below.
(j) The following information shall be submitted with the application:
(1) For an individual, the applicant's name, date of birth, physical address, including residential and any business address(es) attached to the individual, copy of government issued photo identification, email address, and one or more phone numbers, including emergency contact information, and, if applicable, Federal EIN.
(2) For non-individuals, the names, date of birth, physical address, including residential and any business address(es), copy of government issued photo identification, email address, and one or more phone numbers of each stakeholder, affiliates and/or general partners of the applicant, including designation of the highest ranking stakeholder and/or general partner as an emergency contact person and information for the emergency contact person, articles of incorporation/organization, assumed name registration documents, Internal Revenue Service SS-4, EIN confirmation letter(s), and a copy of the operating agreement of the applicant if a limited liability company, copy of the partnership agreement if a partnership, or a copy of the by-laws or shareholder agreement if a corporation; its legal status, and proof of registration with, or a certificate of good standing from the State of Michigan, as applicable.
(3) Proof of lawful use of the proposed premises that may consist of a deed, a lease, a real estate contract contingent upon successful licensing or letter of intent by the owner of the premises indicating an intent to lease the premises to the applicant contingent upon the applicant successfully obtaining a state operating license and local permit.
(4) The name and address of the proposed medical marihuana facility and contact information.
(5) A comprehensive operating plan for the marihuana facility for which the application is being submitted that includes all of the information required for the marihuana facilities plan to be submitted in connection with a state license pursuant to the rules, the operational standards in this chapter, as applicable, and the following at a minimum:
A. A description of the type of marihuana facility applied for.
B. A security plan for the marihuana facility that addresses all required security measures of the rules and addresses at a minimum the ability to meet the security measures of the rules. The security plan must contain the specific details of each piece of security equipment to be utilized by the marihuana facility and comply with the provisions of this chapter, as well as any other applicable provisions of the rules adopted by the State of Michigan. The security system, shall be maintained in good working order and provide twenty-four hours per day coverage and shall be available for inspection and review by the City, Public Safety Department and State Police at all times. A separate security system is required for each facility. Surveillance recordings are to be maintained for a minimum of thirty days.
C. An HVAC plan for the marihuana facility describing in detail among other things the equipment or systems that will be used to prevent any odor of marihuana from leaving the premises.
D. A lighting plan.
E. Disposal and waste management plan for wastes generated at the marihuana facility.
F. A detailed security plan consistent with Rule 35 of the MMFLA Rules.
G. The anticipated or actual number of employees and positions, including a staffing plan.
H. Evidence of insurance required by the MMFLA in the form of a certificate of insurance evidencing the existence of a valid and effective policy, or, evidence that the applicant is able to obtain such insurance and state the limits of each policy, the name of the insurer, the effective date and expiration date of each policy and policy number if known.
(k) Application for operation of a marihuana facility, or leasing property to a marihuana facility, constitutes consent by the applicant, and all owners, managers, and employees of the business, and the owner of the property to permit the City Manager or his/her designee to conduct inspections of the marihuana facility to ensure compliance with this chapter or any other applicable law, rule, or regulation.
(l) Upon receipt of a completed application, the City Clerk may circulate the application to all affected department heads of the City or their designees for input as to whether the application and premises is in compliance with applicable laws, rules and regulations.
(m) If, after preliminary review of the permit application to confirm compliance with applicable laws, rules and regulations and scoring of the applications, there are more than one applications meeting the required minimum score, described in Section 810.05(h), above, then there shall be a selection of the application pursuant to the lottery. All names of applicants whose applications meet the minimum score will be entered into a drawing the day set by Council and shall be open to the public. If selected, the prevailing applicant shall be conditionally approved for a permit and the City shall prepare a conditional approval notice for the purposes of State application requirements. The applicant must then obtain special condition use and site plan approval from the Planning Commission within six months of receiving conditional approval or the approval will expire and the application will be considered withdrawn, although the Planning Commission may grant an extension at its sole discretion for up to an additional six months, so long as the applicant is diligently pursuing special condition use and site plan approval. All permits issued are contingent upon the State of Michigan issuing a license for the operation under State law. A provisional permit does not authorize the applicant to operate a medical marihuana facility without first obtaining a state operating license for the facility, and obtaining all other permits, inspections, and approvals required by this Chapter and all other applicable provisions of this Code.
(n) An inspection of the proposed marihuana facility by the City is required prior to the issuance of the City operating permit. Such inspection shall occur after the marihuana facility is ready for operation: hut prior to the stocking of the business with any medical marihuana and prior to the opening of the marihuana facility or commencement of operations. The City shall verify that the marihuana facility is constructed and can be operated in accordance with the application submitted and the applicable requirements of this Chapter and any other applicable law, rule or regulation.
(o) After verification that the marihuana facility is constructed and can be operated in accordance with the application submitted and the applicable requirements of this Chapter and any other applicable law, rule or regulation, and the issuance of a permanent certificate of occupancy for the marihuana facility, the City Clerk shall issue a permit for a term of one year. The City-issued permit shall be prominently displayed within the marihuana facility.
(p) Throughout the application process, and while any granted permit is in force, the applicant or the permit holder shall report any other change in the information provided on the application to the City within ten business days of the change. Failure to do so may result in a withdrawal of City approval.
(Ord. 2020-06. Passed 7-13-20.)