KALAMAZOO, MI — A deal the city of Kalamazoo approved Monday night will allow a medical marijuana business to move in to a part of town that has sat undeveloped for about a dozen years.

The city voted on Monday, July 1, to approve a measure to sell an approximately 6-acre portion of Davis Creek Business Park to Davis Creek Land Development Co., LLC, for $120,000, and authorize the city manager to sign documents to complete the sale. Davis Creek Land Development Co. has the same principal owners as medical marijuana company Seven Point Supply, LLC., according to the city.

As part of the pending agreement, the developer will redevelop and improve that portion of the business park located south and west of Full Circle Drive by initially constructing an approximately 19,550-square-foot building to operate a medical marijuana facility to cultivate and process medical marijuana, according to a recommendation submitted to the commissioners.

The initial capital investment for the project is expected to be about $1 million, according to the recommendation to the commission, and will result in the creation of approximately 15 full time equivalent jobs once complete.

Interest in development at the business park increased with the state’s new medical marijuana facilities act and a corresponding city ordinance to allow medical marijuana businesses, according to a recommendation to commissioners on the issue.

The approximate 34-acre Davis Creek Business Park site that formerly housed Lakeside Refinery was acquired over several years by the city under the delinquent tax reversion program. The property was transferred to the Brownfield Redevelopment Authority (BRA) to redevelop the land as a certified business park.

To allow for flexibility in redevelopment options (and to avoid the platting requirements of the Land Division Act) BRA and the city became joint owners of the business park. The goal for DCBP was a mixed-use project, consisting of approximately 8 separate parcels, that integrated business development with sustainable, environmentally-sensitive site design. Since the official opening of the business park in October 2007, there was little interest by developers in any portion of the park, according to the recommendation to the city.

As a result, and to improve marketability, development standards established in 2008 were rescinded last year, according to the recommendation. At that time, city staff was discussing a potential project with an aluminum refinishing company that eventually relocated to Battle Creek instead.

BRA is not committing to providing any incentives to the developer, and any consideration to reimburse the developer for eligible activities is dependent upon the developer providing details for a financial analysis whether the project’s viability will require a commitment by BRA to capture tax increment revenues to reimburse developer for its eligible costs, the city said.

The city offered incentives for development at the location in 2017.

The city of Kalamazoo approved Seven Point Supply for three Class C Grower licenses (1,500 plants per license) at Davis Creek Business Park, at 2805 E. Cork Street.