NEW BEDFORD, Mass. (WPRI) — Three proposed recreational marijuana businesses have received preliminary approval from the city of New Bedford.

The office of Mayor Jon Mitchell announced Thursday that the city has tentatively reached “host community agreements” with three applicants seeking dispensary licenses from the Massachusetts Cannabis Control Commission (CCC):

Tree Beard, Inc. — 1 Nauset Street

Southcoast Apothecary, LLC — 115 Coggeshall Street

Metro Harvest, Inc. — 606 Tarkiln Hill Road

To be in compliance with city zoning laws, the facilities must be located in industrially zoned areas, away from residences, schools, and daycare centers.

Other conditions of the agreement include:

Businesses must pay $25,000 upfront and give 3% of yearly gross sales revenue to the city

A charitable donation must be made to New Bedford-based organizations that focus on substance abuse prevention and education programs

City employees shall be given priority for employment at the facilities

Signage must be compatible in size and color with the surrounding buildings and street and cannot contain flashing lights

To move forward, the prospective businesses must complete the Cannabis Control Commission application process and receive a provisional license.

Mitchell’s office said the mayor has signed off on the host community agreements and submitted them to the city council for consideration.

Approvals are also required from New Bedford’s planning, health, and licensing boards.