Property owners looking for new partner for Whately cannabis facility

Dec. 2, 2021 | Doc Pruyne
dpruyne@thereminder.com

WHATELY – Discussing the cannabis growing facility intended for the corner of State Road and Christian Lane, Selectboard Chair Jonathan Edwards couldn’t keep the frustration out of his voice

“The snail’s pace of this stuff is driving me up a wall, as far as economic development for Whately,” Edwards said. “I could care less about the consumption. I want economic development done in the right way and a smart way, and it’s not happening.”

John Dewey, co-owner of the building with his wife, Rebecca, told the Selectboard the property has been under lease to a California company. That company dropped out of the arrangement after about 30 months of development efforts. According to Dewey, who called into a November online meeting, the property covers forty acres, with about 36 acres of farmland still under Chap. 61A protections for development and taxation. The “greenhouse” covers four acres, with 160,000 square feet of cultivation area and a central corridor for harvesting, drying, curing and packaging.

Dewey laid his cards on the table.

“We’re now looking for a replacement tenant cultivator. That process may take some time,” Dewey said, “and what we would like to do is move forward with a new host community agreement (HCA).”

Dewey, a real estate developer, told the Selectboard he would like to negotiate a new host community agreement between Whately and a limited liability company, Whately Cultivator Partners LLC, owned by his wife, Rebecca. The new company will then transfer the host agreement to a new tenant. Dewey explained that dealing with the Cannabis Control Commission is very time-consuming and he hopes to cut the delays before a new tenant cultivator completes the regulatory process.

“We want to accelerate the process to get our tenant into the building,” Dewey said. The first tenants took six months to file the application, received approval 12 months later, then required another four months for architectural approval. “Our goal would be to do community outreach before your December meeting,” Dewey said. “You don’t get any fees until they occupy.”

The size of the facility reduces the number of companies eligible to lease the property, according to Dewey, who is operating within the limits outlined by his lender. Any company hoping to lease the facility needs to have $10 million in assets and $5 million in revenues yearly. Dewey is also talking only to companies with experience in a growing operation with at least 100,000 square feet of production space. No matter, he told the Selectboard, about six companies have voiced interest in the Christian Lane property.

Edwards said, “Personally, if it’s all about making sure there’s a seamless transition, and we can get a company that’s providing some economic bloodlines, I’m all for it. If Brian [Town Coordinator Brian Domina] thinks that this process will facilitate expediting, then let’s do it.”

Joyce Palmer-Fortune heard the call of duty. “When you say the exact same HCA,” she said, referring to a second host community agreement, “it sounds like it bounces to the HCA subcommittee,” which consists of Palmer-Fortune and Domina.

A new host agreement may not be necessary. Dewey hedged his bets by explaining that if no suitable tenant is found the new company, Whately Cultivator Partners LLC, might enter the cannabis industry. He estimated the likelihood of exercising that option was about 10 percent.

“I have no prior experience in the cultivation business,” Dewey said. “At my age it’s not something I’m interested in getting involved in.”

No date was set for Dewey’s next appearance before the Selectboard.

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