Lansing has so far granted zero medical marijuana licenses, denied 18

LANSING — Officials say a pending lawsuit has not halted Lansing's medical marijuana licensing process, though the city has so far granted zero applications.

The city has denied 18 dispensary applications.

City Council approved an ordinance in September 2017, which outlined a licensing process for medical marijuana businesses and limited the number of dispensaries, also called provisioning centers, to 25 citywide.

The city's application deadline for the first round of dispensary applications was Dec. 15, 2017. The ordinance empowers City Clerk Chris Swope to issue up to 20 dispensary licenses from that first round of applications. Five more dispensary licenses would be issued later on.

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A group called Let Lansing Vote sued the city in November 2017, alleging Swope had improperly rejected a petition that challenged the new medical marijuana ordinance. The petition demanded that City Council repeal the ordinance or suspend it until it could be brought before voters on a citywide ballot.

"The lawsuit has not stopped the review process," Swope wrote in an email. "Given the detailed review to ensure the highest quality applicants are selected, a fair process and a large number of applications, the process is moving at a deliberate pace."

Of the 85 dispensary applications received by the city, the clerk has denied 18. Per ordinance, those applicants have the option to appeal the denials before the city's medical marijuana commission. 

The 2017 ordinance did not cap the numbers of other types of marijuana establishments, but those facilities also will need city licenses to operate legally.

As of Friday, the city had received 46 grower applications, 14 processor applications, one secure transport facility application and one safety compliance facility application. The clerk has yet to deny or grant licenses for any of those businesses.

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Lansing Mayor Andy Schor, who took office Jan. 1, has said the city continues to enforce its 2017 ordinance despite the pending lawsuit. Schor also says the city still is enforcing an executive order from former Mayor Virg Bernero, which warned dispensary operators to apply for a license by the city's Dec. 15 deadline or be shut down starting Dec. 22.

The Bernero order stems from Michigan's emergency rules, issued in November 2017 to allow medical marijuana businesses stay open during the local and state licensing processes.

The Lansing Police Department, the City Attorney's Office and the Code Enforcement Division are responsible for shutting down dispensaries that have not complied with the executive order, according to a December news release from the city.

Schor's office declined to say which dispensaries have received cease-and-desist letters under the executive order.

"The City does not comment on active police investigations," city spokeswoman Valerie Marchand wrote in an email Monday.

Marchand also declined to say how many dispensaries have already shut down.

"The City has taken the following actions in an effort to shut down unlicensed facilities that we are aware of: sent cease and desist letters, conducted knock and talks and included cease language in application denial letters in accordance with State Emergency Rules," Marchand wrote.

Lansing does not have a tally of the number of medical marijuana businesses operating citywide, Marchand said, noting that no licenses have been granted.

Ultimately, medical marijuana businesses will need both a city and state license to operate legally within Lansing limits.

The state's application deadline was Feb. 15 for facilities operating under the emergency rules. Michigan officials have sent cease-and-desist letters to 55 medical marijuana businesses statewide after those businesses failed to apply for a license, David Harns, a Department of Licensing and Regulatory Affairs spokesman, said Tuesday.

The state has not yet issued any licenses, Harns said Tuesday.

Contact Sarah Lehr at (517) 377-1056 or slehr@lsj.com. Follow her on Twitter @SarahGLehr.