ATHOL – The Finance and Warrant Advisory Committee gave its stamp of approval on a plan, developed by Town Manager Shaun Suhoski in consultation with other town officials, to distribute funds paid to the town under the community host agreements approved by the Selectboard and signed by the owners of the various marijuana businesses set to open.
Those funds, which will be paid annually over a five-year period, are in addition to the 3 percent sales tax to be paid to the town on an ongoing basis.
The plan calls for 30 percent of non-tax revenues to go to “other post-employment benefits,” 30 percent to the Capital Stabilization Fund, 30 percent to downtown infrastructure costs and 10 percent to drug prevention, education, training, and prevention programs. Payments are to equal 3 percent of gross revenue of the respective businesses.
Suhoski told the committee at Tuesday’s meeting, “I’ve looked at everybody that has a special permit and a host community agreement, and... we have six entities, and one that’s proposed. That one will be before the Board of Selectmen on Dec. 17. They’ve received their special permit from the Planning Board and will be coming before the board for their host community agreement.”
“We made a point of coming up with a template (for the host community agreement) which we think will substantially withstand any challenges,” said Suhoski. “I’m sure our agreements are square with the law. There was an inclusion by the Board of Selectmen of a mandatory charitable donation. Fortunately, the town does not decide. It’s up to the companies to decide.”
Suhoski also explained that, early in the process, the town had hired a zoning consultant, at taxpayer expense, and noted there had been town counsel expenses “above and beyond the norm.” To cover those expenses, cannabis businesses have been required to make a one-time payment ranging from $5,000 to $20,000. He said those payments have gradually decreased because the volume of related work has also diminished.
The town manager also updated the committee on the status of the various marijuana related business, noting that MassGrow, located in the former UTD building, has received its state license and has begun cultivating cannabis, while the others are at different points along the approval process.
Committee member Mike Butler asked if the distribution plan complies with state guidelines for the use of the funds in question.
“I think they do,” Suhoski responded. “The 3 percent has to be related to the presumptively negative impact of the industry upon the communities that allow this new industry into the community.”
Following brief additional discussion, the Finance and Warrant Advisory Committee voted unanimously to endorse the cannabis revenue distribution plan presented by Suhoski.