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March 30, 2016

Worcester strikes second $450K deal for marijuana

Worcester's City Manager Edward Augustus Jr. has approved a second medical marijuana location in the city.

Worcester’s city manager has issued a second letter of non-opposition for a medical marijuana site, opening the door for Prime Wellness Centers, Inc. to locate in the northern part of the city on Pullman Street.

This is the second letter provided to a registered marijuana dispensary in Worcester. The city recently provided a letter of non-opposition to Good Chemistry of Massachusetts, Inc. to locate a dispensary at 9 Harrison St. in the canal district.

The city's letter is just one part of the approval process for these dispensaries to begin operating, as the ultimate approval must be granted by the Massachusetts Bureau of Health Care Safety and Quality. The bureau has no specific timeline for how long these approves take, and each applicant must pay $31,500 in state fees.

As part of an agreement for receiving the letter from the city, Prime Wellness Centers signed a community host agreement equal to the one signed by Good Chemistry. The deal is worth $450,000 for the city and 2.5 percent of gross sales on an ongoing basis.

The organization will pay the city $100,000 plus 1.5 percent of gross sales for the first year, followed by $150,000 and 2 percent of sales the second year. This will culminate in a payment of $200,000 in the third year with 2.5 percent of gross sales being paid to the city in that and subsequent years. Prime Wellness Centers will also contribute $10,000 annually to public charities or causes of its choosing benefiting the neighborhood.

The location is located right off of Route 190 near a Price Chopper grocery store. Prime Wellness Centers has also received a letter of non-opposition from the town of Shrewsbury to open another dispensary at 235 Hartford Turnpike (Route 20).

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