Tuesday, May 16, 2017
YOUNGSTOWN
Officials with five groups said their proposals to grow medical marijuana in Youngstown would be of benefit to the city and those in need.
The groups spoke in turn Monday to city council and city officials about their plans over a three-hour span.
City officials, however, play no role in deciding which – if any – of the groups will be issued a license. That decision rests entirely with state officials.
Ohio will grant licenses, probably in September, to 24 growers statewide. The law permits 12 Level 1 growers for up to 25,000 square feet of growing space with a potential expansion up to 75,000 square feet, and 12 Level 2 growers to cultivate up to 3,000 square feet.
Each of the organizations had approached the city about discussing the proposals, and city officials invited them to give public presentations.
Of the five groups presenting Monday, all except Silver Rapids LLC of Austintown are seeking Level 1 licenses.
The chance that a company looking to cultivate medicinal marijuana in Youngstown will land one of those 12 Level 1 licenses seems slim based on the odds. But Mayor John A. McNally said the city has as fair a chance of getting a license as any other place.
“With 12, there seems like there’s more than enough to go around the state,” he said. “We’re hoping Youngstown will land at least one. We’ll see what happens. The state will look at all the applications. I presume they’d like geographic balance.”
But the state is evaluating each of the applications on a point system with information that identifies the groups concealed from those making the decisions.
Level 1 groups must submit applications to the state by June 20, while the Level 2 groups have until June 16.
The groups giving presentations Monday were:
• Riviera Creek Holdings LLC of Youngstown, operated by Brian Kessler and his nephew, Daniel Kessler.
The company owns a building at 1275 Crescent St. – which used to house Brian’s Maui Toys Inc. business – that would be the home of the medical marijuana facility.
The company plans an investment of $10 million to $15 million with 181 to 319 jobs at full capacity and 71 employees in its first year, Brian Kessler said.
• Fast Track Group LLC of Youngstown with Herb Washington, who owns several local McDonald’s restaurants, as managing partner and chairman.
The company is committing $6 million in capital with 36 people to be hired in its first year of operation.
Washington said the company is looking at a few buildings in the city as potential sites.
“I see how many people this affects in a positive way when there is no other resource,” he said about seeking to obtain a cultivation license for medical marijuana. “It’s an opportunity to make a lot of money, but it’s an opportunity to affect people’s lives in a positive way.”
• Mahoning Valley Agriculture, a company consisting of out-of-state investors, is finalizing a deal at an industrial park and plans to invest about $10 million.
The company would hire 60 to 70 employees to start and grow to 250 to 300 workers in two to three years, said Sanjay Baway, its senior adviser.
• Ohio Grown Medicine LLC, which includes officials from Chicago and Painesville.
The company has a site at 1505 Logan Ave. and plans to invest $8 million to $10 million, said Les Hollis, a consultant who is also the president and chief executive officer of Illinois Grown Medicine, a medical marijuana dispensary service in Chicago.
The company would employ 40 to 70 people, he said.
Unlike the other groups presenting Monday, Ohio Grown said it is evaluating a potential secondary site in addition Youngstown. Company officials didn’t disclose the other location.
• Silver Rapids LLC of Austintown was the only group Monday seeking a Level 2 license. The proposed location would be in Performance Place, an industrial park off Poland Road, said Victor Masters, one of its operators.
The company plans to invest about $700,000 to $750,000, he said.
The medical marijuana will be made available to purchase by those with 21 different medical conditions by September 2018.