Proposed Cannabis ‘Craft Grower’ Would Not Include Dispensary; Referendum Question Proposed For November Ballot

Elk Grove Village trustees approved a cannabis craft growing operation, along with placing a referendum on the November ballot on allowing recreational marijuana dispensaries in the village, at Tuesday’s village board meeting.

The agreement between the village and Alpha Consulting and Management, an Illinois corporation, is called a “craft grower” agreement. It lists the craft grower’s chief compliance officer as Fabian Limon of Chicago. Alpha is expected to apply for a state license.

The agreement approved Tuesday says the business would only grow marijuana and have no public retail uses.

Mayor Craig Johnson said a referendum question on the November Presidential Election ballot would help determine whether the village should allow recreational sales in the village.

The craft grower section within the state law allowing recreational marijuana has the effect of allowing growers to operate in a similar way to craft breweries, in this case growing cannabis and selling that product in the same location.

The development and operating agreement attached to the proposed Elk Grove Village ordinance would prevent the craft grower from also being used as a dispensary.

State law allows one licensee, a grower, and another licensee, a dispensary, to operate in separate sections of the same building, allowing the overall operation to grow and sell recreational marijuana.

A 93,000 sq. ft. marijuana cultivation center has been located in Elk Grove Village since medical marijuana was approved by the Illinois legislature several years ago. When recreational marijuana was approved last year, that cultivation center was allowed to grow marijuana for recreational dispensaries.

Since recreational marijuana became legal, Johnson said three craft growers have approached the village with proposals to open, all of which only expressed an interest in growing cannabis, not selling it to the public as a dispensary.

The question regarding marijuana dispensaries on the November ballot would read, “Shall the village authorize the sale of adult-use ‘recreational cannabis’ (marijuana) within guidelines established by the State of Illinois and the Village of Elk Grove?”

The address where this craft grower would locate is not listed in the agreement between the village and Alpha Consulting, nor is an address for Alpha Consulting, other than what appears to be Limon’s home address.

The village would collect a tax on all sales at dispensing organizations or cultivation centers of 3% of gross sales.

The proposed agreement includes a community benefits clause. The craft grower would contribute an annual $5,000 to Elk Grove Village for community events and outreach in the proposed agreement, along with an additional annual $2,500 contribution to the Elk Grove Village Cares addiction treatment program run by the village and another $2,500 in annual contributions to the Elk Grove Village-based Kenneth Young Youth Center for drug and mental health treatment programs.

The agreement says the business must be located within areas zoned industrial by the village. The facility may be no less than 25,000 sq. ft. and no more than 100,000 sq. ft.

Loading docks for the building would be internal, meaning a truck would drive into a dock with an exterior door, which would be closed before the truck was loaded or unloaded.

Signage on the building would also be limited. “The building shall have no obvious signage that represents cannabis by either text or image. Moreover, signage shall be limited to the business name and address and shall be internally illuminated,” the proposed agreement says.