Under terms of the contract, Union Twist will pay the city a community impact fee of 3 percent of its future gross sales. The money is meant to offset the costs the city incurs for hosting the business.

FRAMINGHAM — The first retail marijuana shop approved in Framingham will pay the city $50,000 upfront and 3 percent of its future sales revenue under an agreement signed by Mayor Yvonne Spicer last week.

Union Twist, which plans to open at 630 Worcester Road (Rte. 9), signed a host community agreement with Spicer on May 3.

While the pact still needs approval from the state Cannabis Control Commission, the business cleared a key hurdle in state licensing by reaching a deal with the city, which is evaluating applications from a range of prospective marijuana establishments.

Union Twist plans to sell both medical and recreational cannabis products, though its initial agreement with the city covers only the non-medical side of its operations.

Under terms of the contract, the business will pay the city a community impact fee of 3 percent of its future gross sales. The money is meant to offset the costs the city incurs for hosting the business.

In paperwork submitted to the city, Union Twist projected it will serve a little more than 267,000 customers during its first year in business, generating more than $40 million in revenue, about $1.2 million of which would be transferred to the city in the form of a 3 percent local impact fee.

The agreement outlines some intended uses for Framingham's cut of the pot revenue, including paying for higher public safety costs, establishing addiction treatment programs and other public health and education initiatives, fixing roads and promoting a "positive perception" of the city.

Union Twist retained the right to renegotiate the fee in the future, based on the dispensary’s track record with the city and incidents documented by the Police, Fire and Inspectional Services departments.

Town officials previously adopted an additional 3 percent local tax on dispensary profits, adding to the city's potential haul once the place is open for business.

Union Twist will be on a busy stretch of Rte. 9, occupying a one-story brick building near the intersection with Prospect Street. It will lease the building from a sibling company, UT Framingham RE LLC, which signed an agreement in January to buy it.

Union Twist plans to operate from 10 a.m. to 8 p.m., seven days a week. During its first three months in business, the dispensary will allow patrons to enter by appointment only, and will hire a parking lot attendant to keep traffic flowing outside.

It will also use a satellite parking area for staff and overflow parking for customers. The dispensary must provide a shuttle to and from the satellite lot.

It agreed to provide a designated area for taxis to drop off customers, and will not allow passengers to be dropped off along Rte. 9 or other public roads. Patrons won't be permitted to congregate outside the building or remain in the parking lot for more than 15 minutes.

The agreement stipulates that Union Twist must abide by the state laws for recreational pot, as well as Framingham's general bylaws, sign bylaws and zoning regulations, and regulations established by the Board of Health. It is also bound by the terms of a Feb. 21 decision by the Planning Board, which conducted a minor site plan review.

Union Twist’s management team includes a mix of professionals with experience in the cannabis industry, the legal world and state government.

Its CEO is Amy McNamee, a longtime Boston resident with a background in finance who has practiced law in Massachusetts for more than 20 years. She was previously an assistant district attorney in Suffolk County.

Union Twist’s chief operating officer is former Democratic state Rep. Marie St. Fleur, a lawyer who also served as an assistant state attorney general and staffer to former Boston Mayor Thomas Menino.

Another key player, Tahira Rehmatullah, has broad experience in the cannabis industry. Rehmatullah, who will serve as an adviser to the dispensary, earned her business degree from the Yale School of Management. She was previously named “one of the most powerful women in the cannabis business” by Fortune Magazine, according to a biography available online.

Rehmatullah is managing director of Hypur Ventures, a venture capital fund based in New York that backs cannabis industry businesses, providing investments of between $1 million and $25 million.

She is also CFO of an acquisition company that merged in October 2018 with cannabis technology maker MF Freeway after raising $57.5 million. The two will become subsidiaries of a newly-formed holding company that will trade on the Nasdaq Stock Market, according to Rehmatullah's resume.

Union Twist’s agreement with the city will remain in effect for three years. The contract stipulates that it cannot be transferred to another entity. The business also agreed to post a bond of $5,000 to cover any unanticipated costs to the city if it ceases operations in the future.

Union Twist hasn't completed an application to the Cannabis Control Commission, according to the most recent listing provided by the commission, compiled in late April.

Framingham will allow as many as six retail shops in the city. In addition to Union Twist, three other stores have cleared the city’s review and are negotiating host community agreements. At least three others are contending for the city’s remaining two spots.

Jim Haddadin can be reached at 617-863-7144 or jhaddadin@wickedlocal.com. Follow him on Twitter: @JimHaddadin