Worcester signs agreements with two recreational pot stores
Photo | Zachary Comeau
Good Chemistry eventually wants to sell both medical and recreational marijuana from this Canal District facility.
Two marijuana companies, which had previously signed agreements with Worcester for medical marijuana facilities, have signed recreational agreements with the city.
The agreements, signed within the last week, give Good Chemistry of Massachusetts and Prime Wellness the city’s OK to operate adult-use cannabis facilities.
As of July 2 - when the state’s Cannabis Control Commission released each full recreational marijuana applicant - neither company had submitted all required materials to the state.
However, an agreement between the company and city is required by the state law legalizing and regulating the sale of the products.
Colorado-based Good Chemistry, at 9 Harrison Avenue, received Board of Health approval last week, and the Colorado-based company is eyeing an Aug. 2 date to open for medical marijuana patients only.
Prime Wellness, which is eyeing a location at 65 Pullman St., has not yet been approved by the city’s health officials. Prime's headquarters is in Connecticut.
Both companies have previously signed agreements governing medical marijuana operations, and the adult-use agreements are nearly identical. Both companies will be required to make an annual payment to the city of 3 percent of its gross sales. In year one, however, the companies will make two payments: $60,000 in late 2018 and early 2019 and the second either the balance of the 3 percent not covered by the first payment or $60,000 - whichever is greater - within a year.
Payments will be pro-rated if the companies do not operate for a full calendar year.
If the companies fail to sell at least $4 million in products in any year, their annual payment will be $120,000.
The agreement has Good Chemistry and Prime Wellness giving employment priority to Worcester residents, with at least 10 percent of those minorities, 5-percent women and 15-percent low-to-moderate income residents.
Both firms will also be urged to consider local vendors for supplies and materials first.
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