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March 16, 2016

Worcester medical marijuana dispensary to open

A new medical marijuana facility would be located near Kelley Square in the Canal District.

A medical marijuana dispensary will open in the canal district, following a non-opposition letter from the city manager to Good Chemistry of Massachusetts.

The site at 9 Harrison St. in a former dance studio would house the retail facility. A growing facility will be located elsewhere. The location is near Kelley Square and the Crompton Collective. The decision comes as the state is reviewing wide-spread legalization of the drug.

The letter of non-opposition is a required as part of the application process to open a dispensary. Good Chemistry of Massachusetts will operate the dispensary, and will make an effort to ensure the 10-12 staffers it needs are local.

As a condition of receiving the letter, Good Chemistry signed a community host agreement, which requires it to pay the City $450,000 over three years, plus an escalating percentage of gross sales. Good Chemistry will also contribute $10,000 annually to public charities or causes of its choosing that benefit the neighborhood. The agreement is believed to be the largest signed by a municipality with a Registered Marijuana Dispensary thus far in the state, according to city officials.

“More than 60 percent of Worcester voters approved medical marijuana at the ballot box, and it’s up to the city to ensure this program is rolled out safely and thoughtfully,” City Manager Edward M. Augustus, Jr. said in a statement.

The agreement will ensure that the city and the neighborhood see “substantial benefits” from the deal, he said, and the city would look to replicate the deal with any other dispensary operators.

Good Chemistry will pay the city $100,000 plus 1.5 percent of gross sales revenue during the first year of operation. In the second year, they will pay $150,000, plus 2 percent of gross sales revenue. In the third year, they will pay $200,000 plus 2.5 percent of gross sales revenue. The company will continue to pay 2.5 percent to the city in all subsequent years of operation. Good Chemistry has also agreed to pay all real property taxes.

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