The city of Detroit is set to open its second round of limited marijuana business licenses today, August 1st, 2023. This round includes 30 retail licenses, ten microbusiness licenses, and ten consumption lounge licenses.
The move comes roughly four years after recreational marijuana sales began in Michigan. Last December, Detroit regulators issued 33 retail licenses in the first licensing round but none for microbusinesses or consumption lounges. Currently, there are 28 recreational dispensaries open in Detroit.
The application window and decision announcement timeline are expected to take around six to eight weeks, with prospective licensees being notified of their status after the window closes. This second round of licenses marks a significant milestone in the process of legalizing and regulating cannabis businesses in Detroit, which has gone through several legal challenges and hurdles since the legalization of recreational marijuana in Michigan.
What Types of Licenses Are Available?
The city of Detroit is offering a total of 30 retail licenses in the second licensing round, along with ten microbusiness licenses and ten consumption lounge licenses. Half of these licenses will be for social equity applicants or operators with at least one or more equity applicants who own and control at least 51% of the business.
Retailer license holders can sell marijuana products to customers 21 and older. Microbusiness licensees will be able to grow, process, transport, and sell their own marijuana-infused products, like edibles or vape cartridges, under this license type. Consumption lounge licenses allow businesses to allow guests to consume cannabis on the premises of the business.
The social equity applicants must reside in a disproportionately impacted community or have an operator with equity applicants owning and controlling at least 51% of the business. One must also meet specific criteria to qualify as a social equity applicant or business.
How to Apply for a License
The deadline to apply for a cannabis business license in Detroit is August 31st, 2023. Those interested in applying will need to meet certain requirements set by the city of Detroit and fill out an extensive application form, including details about proposed operations, background information on owners, and a business plan.
Once the application window closes, applicants will be notified of their status an estimated six to eight weeks after that date. Those who are approved for a license will then need to pay the appropriate licensing fees. All City of Detroit marijuana business licenses, cost $5000.00, with an application fee of $1000.00. There are no discounts for Detroit Legacy certified applicants.
This licensing round marks a significant step forward in regulating cannabis businesses in Detroit, with more licenses available for recreational marijuana businesses than ever before. With applications due by August 31st, there is still time for prospective licensees to apply and make sure their applications meet all the necessary requirements.
With the second round of applications, Detroit is opening up more adult-use retailers beyond the two currently open. This opens up the potential for many new businesses to enter the industry and offer services and products to customers in Michigan.
The city has also taken steps to prioritize social equity applicants through this application window, as half of all licenses must go toward those affected by prohibition. This means that more people are able to access the cannabis industry, even if they were formerly excluded due to past criminal records or economic disadvantages.
The city of Detroit hopes these new licenses can help make recreational marijuana businesses more accessible and equitable for all Detroiters. With this second round of applications now open, many are hoping it will lead to greater success for the cannabis industry in Detroit.
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