Marijuana business park investors may have bigger plans

Eric Lacy | Lansing State Journal

Show Caption Hide Caption How to get a medical marijuana card This is a quick guide for Michigan residents on how to get a state-issued medical marijuana card. This video applies for both marijuana patients and caregivers. For more information about the marijuana industry and related coverage visit lsj.com.

WINDSOR TWP. — A nearly 130-acre medical marijuana business park that investors hope will be the largest east of the Mississippi River is starting to take shape.

It's called Harvest Park, near two major highways, and could put pressure on other investors in the state and beyond to get moving on their own commercial marijuana projects.

“Anybody that we’re competing with right now, they can’t claim what we can claim over here," said Jeff Donahue, Harvest Park's managing director.

Harvest Park is expected to occupy two parcels of land at Lansing and Creyts roads, east of General Motors' Lansing Delta Assembly plant.

A group of private investors purchased the land from Windsor Township last year for $2.4 million, according to county tax records. Donahue won't reveal names of Harvest Park's investors.

These investors now have agreements with buyers who want at least half of the 20 lots available and anticipate the entire development will create up to 1,000 jobs.

The park requires about $2 million in infrastructure development for streets and utility service, Donahue said.

Lansing's Board of Water & Light is working with private investors and is expected to have the first 62 acres of Harvest Park accessible to electricity and water in a couple months.

“I’ve never had a deal move this fast that’s this big in my career," said BWL General Manager Dick Peffley, who is a 40-year employee of the utility.

Each Harvest Park business will be required to get permits and licenses approved by the township and the state. That may take a while, because the state's licensing process is under an extensive review process.

Donahue isn't worried about delays. He said buyers aren't either.

"I think they feel it’s the end of prohibition," Donahue said. "I think they feel (marijuana) is going to be federally legal in the next five years.

"It's that evolving industry, getting in a space that’s kind of something new. It’s exciting.”

A cultivation facility is currently under construction on the east side of Creyts. During a tour of the site, Donahue declined last week to reveal the company's name.

The facility will be located in the 62-acre parcel BWL will service. That parcel with 10 sold out lots is considered Phase 1 of Harvest Park's plans.

One business that has committed to Phase 1 is a company called Green Peak Innovations. Attempts to reach Green Peak Innovations officials weren't successful.

The company's website shows a map with its location inside the Harvest Park property and lists four job openings: director of security, director of retail, IT director and financial controller. The website also says the company has experience ranging from apparel manufacturing to food processing to healthcare policy.

Windsor Township's Planning Commission is expected to review plans proposed by other Harvest Park businesses seeking special use permits in coming weeks.

Phase 2 of Harvest Park is 67 acres west of Creyts. A sale is pending for about 30 acres of that property, according to Harvest Park's website. Investors are hopeful all lots for Phase 2 will be sold out by the end of this year.

BWL will likely handle all water and electricity for that parcel, too.

Eaton County property records show Harvest Park's nearly 130 acres were purchased last year from the township by Alimac LLC for $2.4 million.

Alimac LLC's first tax bill is due in July.

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Donahue said lots are marketed to prospective buyers for $149,000 an acre.

As marijuana-related businesses open within Harvest Park, investors may consider putting more traditional businesses along the Lansing Road corridor.

“Maybe it’s not a bad place to throw in a Burger King," Donahue said laughing.

Marcus Braman, Windsor Township's supervisor, is pleased with the Harvest Park investors' approach. But he's also cautious.

The township is a 35-square-mile area south of Delta Township and the I-69/I-96 interchange in Eaton County. It has about 7,000 residents and is known for its manufacturing base, but doesn't have experience in the medical marijuana industry.

Until state officials have their licensing system up and running, the township and other municipalities around the state are in a holding pattern.

"I want the state to take any approach they feel they need to take," Braman said. "I respect the process."

In June 2017, the township board decided less was more when it came to crafting a medical marijuana ordinance.

Officials approved a 12-page ordinance that requires marijuana establishments to obtain special land use permits and state-approved licenses to operate.

It's unclear if there are plans in other parts of the state to create large-scale medical marijuana business parks.

The Michigan Department of Licensing and Regulatory Affairs doesn't regulate business parks, it only regulates individual facilities, said David Harns, a LARA spokesman.

"It’s up to local units of government if they want to allow them to be that close, or require that they be in a specific area," Harns said in an email.

The department can't discuss any individual applicants for commercial medical marijuana licenses until they are brought before its licensing board.

Since there are no guarantees with Harvest Park's business model, the township may be putting itself at risk.

Eaton County Prosecutor Doug Lloyd said Tuesday such a project could drain public safety resources.

“Law enforcement can only do so much," Lloyd said. "So when you bring things of this nature, crime can come with it.”

Township officials approved Harvest Park on the condition it won't include marijuana provisioning centers, also known as dispensaries.

Officials outside of Lansing have expressed concerns about dispensaries because the city has allowed up to 80 to operate unlicensed the past few years.

State law allows cities and townships to decide whether to allow marijuana establishments to the operate in their communities and which types of businesses to allow.

Donahue wants to reassure township officials and residents that Harvest Park will be safe and secure.

Donahue expects plenty of protective fencing, gates, 24-hour security and possibly drone technology.

Each company will have to follow strict odor mitigation procedures and policies based on local and state regulations, he said.

“They can’t come in here and just do their own thing," Donahue said.

To operate a marijuana establishment in Michigan, the business needs approval from both the state and the municipality where the business is located.

There may be more clarity about state regulation of commercial medical marijuana facilities by the end of this week.

Michigan's Medical Marihuana Licensing Board is scheduled to meet 9:30 a.m. Thursday at the Michigan Library & Historical Center, 702 W. Kalamazoo St.

State officials started taking applications for commercial licenses on Dec. 15. There is no deadline for submission.

Eric Lacy is a reporter for the Lansing State Journal. Contact him at 517-377-1206 or elacy@lsj.com. Follow him on Twitter @EricLacy.