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Worcester Agrees to First Community Host Agreement with Registered Marijuana Dispensary

For Immediate Release: 3/16/2016 8:30 am

Worcester, MA (March 16, 2016) - City Manager Edward M. Augustus announced Wednesday he will provide a letter of non-opposition to Good Chemistry of Massachusetts, Inc. to locate a Registered Marijuana Dispensary at 9 Harrison Street.

As a condition of receiving the letter, Good Chemistry has signed a community host agreement, agreeing 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 benefiting the neighborhood. The agreement is believed to be the largest signed by a municipality with a Registered Marijuana Dispensary thus far in the state.

As part of the host agreement the City has agreed to approve no more than four Registered Marijuana Dispensary facilities. Any future approved facilities will be spread out across the City so no neighborhood has more than one.

"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," said City Manager Edward M. Augustus, Jr. "This agreement ensures the City of Worcester, and in particular the neighborhood, sees substantial benefits from the deal. We will look to replicate this agreement with any other dispensary operators."

The letter of non-opposition is a requirement for Good Chemistry to submit a phase three siting profile to the Massachusetts Department of Public Health as part of their application process to open a dispensary.

In order to receive a letter of non-opposition, City Manager Augustus required Good Chemistry and any other company intending to establish a dispensary and/or cultivation facility in the City to 1.) Host a neighborhood meeting at the proposed dispensary site in conjunction with the area district councilor, 2.) present their proposal at a City of Worcester interdepartmental meeting, involving the fire department, police, Inspectional Services, Economic Development, Public Health and the Office of the City Manager, 3.) sign a community host agreement with the City. Good Chemistry is the first company to meet all three requirements.

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 during the second year of operation. In the third year, they will pay $200,000, plus 2.5 percent of gross sales revenue in the third year and all subsequent years of operation in the City.

Good Chemistry also agreed to pay all real property taxes, and that in no event shall the company apply for a reduction or elimination of property taxes due to its not-for-profit status.

Good Chemistry also agreed to make their best efforts to hire Worcester residents to work in the dispensary. They expect to hire 10 to 12 people at the dispensary.

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