(A) Applications for a city license shall be made in writing to the City Manager. All applications submitted to the City Manager in accordance with the provisions of this chapter shall be considered for the issuance of a license. An applicant may apply for multiple licenses under this chapter of the same or different natures simultaneously, as permitted by law.
(B) A complete application for a license or licenses required by this chapter shall be made under oath on forms provided by the City Clerk, and shall contain all of the following:
(1) If the applicant is an individual, the applicant's name, date of birth, physical address, email address, one or more phone numbers, including emergency contact information, and a copy of a government-issued photo identification card of the applicant.
(2) If the applicant is not an individual, the names, dates of birth, physical addresses, email addresses, and one or more phone numbers of each stakeholder of the applicant, including designation of a stakeholder as an emergency contact person and contact information for the emergency contact person, articles of incorporation or organization, internal revenue service SS-4 EIN confirmation letter, and the operating agreement or bylaws of the applicant, if a limited liability company.
(3) The name, date of birth, physical address, copy of photo identification, and email address for any operator or employee if other than the applicant.
(4) The name and address of the proposed marihuana operation and any additional contact information deemed necessary by the City Manager.
(5) Applicant or licensee shall keep records of the results of the criminal history background checks performed pursuant to MMFLA and/or MRTMA requirements and shall provide copies for every applicant, licensee, stakeholder, and employee to the City Clerk within five business days of receipt.
(6) An affirmation under oath as to whether the applicant or operator has had a business license revoked or suspended, and if revoked or suspended, then the reason for such revocation or suspension.
(7) A copy of the proposed business plan for the marihuana operation, including, but not limited to, the following:
(a) The proposed ownership structure of the marihuana operation, including percentage ownership of each person; and
(b) A current organization chart that includes position descriptions and the names of each person holding each position.
(8) One of the following:
(a) Proof of ownership of the entire premises wherein the marihuana operation is to be operated; or
(b) Written consent from the prope1ty owner for use of the premises in a manner requiring licensure under this chapter along with a copy of any lease for the premises.
(9) Verify compliance with state-mandated security measures as outlined in Emergency Rule 35 of the Department of Licensing and Regulatory Affairs: Adult-Use Marihuana Establishments Emergency Rules of July 3, 2019, as may be updated or amended from time to time.
(10) A floor plan of the marihuana operation, as well as a scale diagram illustrating the property including all available parking spaces, all available handicapped accessible parking, and noting storage spaces for any flammable or combustible substances.
(11) Verify compliance with state-mandated marketing and advertising restrictions as outlined in Emergency Rule 52 of the Department of Licensing and Regulatory Affairs: Adult-Use Marihuana Establishments Emergency Rules of July 3, 2019, as may be updated or amended from time to time,
(12) A location area map, as measured pursuant to this chapter, of the marihuana operation and surrounding area that identifies the relative locations and the distances, as measured pursuant to § 116.11, to the buffered uses set forth in § 116.10, and noting any residentially zoned property within one hundred feet of the marihuana operation.
(13) An affidavit that neither the applicant nor any stakeholder of the applicant is in default to the city. Specifically, that the applicant or stakeholder of the applicant has not failed to pay any prope1ty taxes, special assessments, fines, fee or other financial obligation to the city.
(14) A signed acknowledgment that the applicant is aware and understands that all matters related to marihuana, growing, cultivation, possession, dispensing, testing, safety compliance, transporting, distribution, and use are currently subject to state and federal laws, rules, and regulations, and that the approval or granting of a license hereunder does not exonerate or exculpate the applicant from abiding by the provisions and requirements and penalties associated with those laws, rules and regulations or exposure to any penalties associated therewith; and further the applicant waives and forever releases any claim, demand, action, legal redress, or recourse against the city, its elected and appointed officials and its employees and agents for any claims, damages, liabilities, causes of action, damages, and attorney fees the applicant may occur as a result of the violation by applicant, its officials, members, partners, shareholders, employees and agent of those laws, rules, and regulations and hereby waives, and assumes the risk of, any such claims and damages, and lack of recourse against the city, its elected and appointed officials, employees, attorneys, and agents.
(15) Proof of an insurance policy covering each license and naming the city, its elected and appointed officials, employees, and agents, as additional insured parties, available for the payment of any damages arising out of an act or omission of the applicant or its stakeholders, agents, employees, or subcontractors, in the amount of (a) at least $1,000,000 for property damage; (b) at least $1,000,000 for injury to one person; and (c) at least $2,000,000 for injury to two or more persons resulting from the same occurrence. The insurance policy underwriter must have a minimum A.M. Best Company insurance ranking of B+, consistent with state law. The policy shall provide that the city shall be notified by the insurance carrier 30 days in advance of any cancellation. The insurer must be licensed in the State of Michigan.
(16) (a) Proof of a surety bond in the amount of $50,000 with the city listed as the obligee to guarantee performance by applicant of the terms, conditions and obligations of this chapter in a manner and surety approved by the City Attorney; or, in the alternative;
(b) Creation of an escrow account as follows:
1. The account must be provided by a state or federally regulated financial institution or other financial institution;
2. The account must be for the benefit of the city to guarantee performance by licensee in compliance with this chapter and applicable law; and
3. The account must be in the amount of $20,000 and in a form prescribed by the City Attorney.
(17) Projected or actual annual budget and revenue based upon accepted accounting principles (GAAP standards) demonstrating sufficient financial resources to fund and execute the submitted business plans and building plans.
(18) An estimate of the number and type of full-time equivalent jobs that the marihuana operation expects to create and the amount and type of compensation for each position, including, but not limited to healthcare, retirement, and paid time off.
(19) Submission of an odor plan to address any potential odors stemming from the use, storage, growing, or processing of marihuana.
(20) Execution of the Financial Resources Litigation History form made available by the City Clerk.
(21) Execution of the Morals, Good Order and General Welfare Litigation History form made available by the City Clerk.
(22) Any other information requested by the City Manager to assist in the review of the application. Failure to provide required or requested information may result in an incomplete application determination and may result in denial or revocation of licensure.
(23) There is an ongoing obligation to provide updated information to the City Manager. Should there be a change to any portion of an application, the applicant must advise the City Manager within seven days from date of change and provide any documentation to support the change in application. Failure to provide documentation shall result in an incomplete application determination and is subject to denial of licensure.
(C) Each application shall be accompanied by a license application fee in an amount of $5,000.
(D) Upon receipt of a completed application meeting the requirements of this section and the appropriate license application fee, the City Manager shall refer a copy of the application to each of the following for their approval: the City Attorney, the Scottville Police Department, the Zoning Administrator, and the City Treasurer.
(E) No application shall be approved unless:
(1) The Scottville Police Department has inspected the proposed location and the Zoning Administrator has approved proposed site plans for compliance with all laws for which they are charged with enforcement and for compliance with the requirements of this chapter.
(2) The Zoning Administrator has confirmed that the proposed location complies with the Zoning Code and this chapter.
(3) The City Treasurer has confirmed that the applicant and each stakeholder of the applicant are not in default to the city, including, but not limited to, non-payment of property taxes.
(4) The Scottville Police Department has reviewed the criminal history background checks for each applicant, stakeholder, and employees provided by the applicant.
(5) The City Attorney’s office has reviewed and approved as to form the insurance and either the surety bond or escrow account documentation for compliance with state and local laws.
(Ord. 2022-01, passed 4-25-2022)