Cannabis Establishments in Salem: Frequently Asked Questions
CITY OF SALEM, MASSACHUSETTS
Cannabis Establishments in Salem: Frequently Asked Questions
January 22, 2019
The City is providing this FAQ in an attempt to address some of the more common questions and concerns regarding the forthcoming establishment of marijuana retail shops in Salem. It is intended to be an informational guide only and not a legal document. For questions about zoning, please call the Zoning Officer at (978) 619-5641. For questions about state regulations or host community agreements, please call the Legal Department at (978) 619-5638. This document may be updated periodically to reflect additional questions or new information about specific proposed retailers.
How many cannabis retailers will be allowed to open in Salem?
The City has adopted a cap equal to 20% of the licensed liquor/package stores in the community. This works out to a maximum of five cannabis retail shops. One of those is granted by state law to the existing medical cannabis business, Alternative Therapies Group Inc., located on Grove Street. State law regarding retail cannabis does not allow a cap less than 20%.
Where can they open up?
Salem’s cannabis zoning only allows cannabis retailers to be in B2, B4, B5, Industrial, and Business Park Development zones, and only by special permit from the Zoning Board of Appeals (ZBA). Zones are show on the City’s zoning map or go to visit the online mapping tool and check the box next to “Zoning” on the Layers tab. In addition, there are buffers imposed by state statute – no establishment may be sited within 500 feet of a public or private Kindergarten through Grade 12 school – and by the Salem City Council – no establishment may be sited within 500 feet of a church or funeral home, or within 1,000 feet of Salem State University. These additional buffers appear to conflict with state law and may not ultimately be sustainable.
What local approvals do they need to open?
At the local level, cannabis retailers will need two approvals (not including the usual building and occupancy permits, etc.): a special permit from the ZBA and a negotiated Host Community Agreement (HCA). Even with both of these approvals, there is no guarantee that a proposed retailer will receive the final approval they require, which comes from the state Cannabis Control Commission (CCC). A retailer needs all three of these things – ZBA special permit, HCA, and CCC license – to be able to open for business. In addition, state law requires the proposed retailer to hold a community meeting prior to receiving their state license. The City has advised proposed retailers to hold these meetings as early in the process as possible so neighbors can meet them and ask questions.
Will they grow cannabis in Salem?
Cannabis cultivation establishments fall under a different category in Salem’s zoning and the CCC’s regulations. They are allowed, but not in all of the same zoning districts as retailers. Like retailers, they would require a ZBA special permit, a HCA, and a CCC license. The 20% cap on retailers does not apply to cultivation establishments. Because Salem lacks the very large parcels of land or buildings necessary for a cultivation operation, the City has not been approached by any large-scale cultivators at this point. Thus far, all of the proposed retailers, with one exception, would grow their cannabis in another city or town. Any entity proposing a combined facility, with cultivation and retail taking place together at the same property, will rqeuire separate special permits, HCAs, and CCC licenses for each use.
Will consumption of cannabis at these stores take place?
No, on-site consumption of cannabis is not permitted under the law.
What does it take to get a ZBA special permit?
The conditions that must be met to receive a ZBA special permit for a cannabis establishment in Salem are outlined in the zoning code.
What does it take to get a Host Community Agreement?
It’s important to note that receipt of a ZBA special permit does not guarantee a proposed retailer a Host Community Agreement. In other words, the first four retailers to receive a special permit from the ZBA will not necessarily receive a Host Community Agreement with the City. The application form and and additional details about applying for a Host Community Agreement can be found here: https://www.salem.com/legal-department/files/marijuana-establishment-host-community-agreement-application.
Where have these shops been proposed?
As of the date of this FAQ, the following cannabis establishments have either filed with the ZBA to begin their special permit process or have contacted the City to indicate that they intend to do so.
Alternative Therapies Group(2) 50 Grove Street
Atlantic Medicinal Partners(4) 297 Highland Avenue
CKR Natural Solutions No site identified
CDX Analytics(3) 39 Norman Street
The Frosty Nug No site identified
Good Chemistry No site identified
INSA(4) 462 Highland Avenue
Mederi, Inc.(1) 250 Highland Avenue
Naia LLC No site identified
NS Alternatives(1) 207 Highland Avenue
Sanctuary Medicinals(1) 400 Highland Avenue
Seagrass(4) 3 Dodge Street
Terpene Journey(1) 376 Highland Avenue
Witch City Gardens(4) 38 Jefferson Avenue
(1)Special permit issued by ZBA.
(2)Special permit issued by ZBA; host agreement signed with City; state license approved.
(3)Existing medical marijuana testing laboratory, applying to also be able to test adult use recreational marijuana. No cultivation or retail component. Host agreement signed with City.
(4)Special permit issued by ZBA; host agreement signed with City.
Will all the retail shops be on Highland Avenue?
No. One of the criteria of the HCA process will be consideration of community impacts on specific neighborhoods and traffic impacts on the immediate corridor, including whether clustering of retailers will unduly impact one particular neighborhood, roadway, or area. Through the HCA process, the City undoubtedly will limit the number on any one corridor, in an effort to encourage geographic distribution of this use throughout the community.
Are these facilities safe?
Cannabis retailers must comply with stringent safety and security requirements, which are outlined in both the ZBA special permit conditions and the CCC regulations. In addition to coverage of the interior and exterior of the facility by security cameras, to which Salem Police will have 24-hour access, these establishments are required to have security personnel and will not be permitted to admit any customer without first verifying their age and identification. A condition of the HCA approval will also be endorsement of the proposer’s security plan by the Chief of Police. The CCC will operate a state-wide database of customers so that all retailers will know if any one customer has already purchased cannabis at another retailer and is attempting to circumvent legal limits on cannabis purchases and possession established by state statute.
Will a cannabis retail shop bring crime to my neighborhood?
Studies in the Journal of Studies on Alcohol and Drugs from Rutgers University and the journal Preventive Medicine identified that there was no increase in crime rates in those areas around cannabis dispensaries, likely because “measures dispensaries take to reduce crime (i.e. doormen, video cameras) may…deter possible motivated offenders.”
Will my property value go down if a cannabis retailer opens near my house?
There is no evidence that cannabis retail shops reduce property values in the surrounding neighborhood. In those states where cannabis has been legalized, studies have found a positive impact on adjacent property values.
What kinds of traffic impacts will these shops have?
As part of both the ZBA special permit application and the HCA application process, proposed cannabis retailers must submit a traffic plan conducted by a certified traffic engineering firm or consultant. Specific traffic impacts will vary depending on the proposed retail location and the number of other cannabis retailers both in Salem and the surrounding communities. The Institute of Transportation Engineers’ (ITE) Trip Generation Manual, 10th edition, looked at trip counts for twelve cannabis dispensaries in Colorado and Oregon ranging from 730 square feet to 3,140 square feet and found an average trip count of about 253 daily trips per 1,000 square feet of dispensary. The ITE cautions that that number is a reflection of only a sample of 12 dispensaries, however, which they consider to be a small sample and liable to statistical error. For comparison, the 8th edition of the ITE manual found a bank branch had about 156 daily trips, a fast food restaurant with drive-through 496 daily trips, and a 24-hour convenience store 738 daily trips (all per 1,000 square feet).
Will the City get tax revenues from cannabis sales?
Yes, the City adopted a 3.0% local excise tax on retail cannabis sales. In addition, these establishments are not exempt from property taxes and so pay all required property taxes. Finally, HCAs will require additional payments to the City intended to mitigate the impacts of the establishment on the community.
What about medical cannabis dispensaries?
At this time, the state Department of Public Health (DPH) still licenses medical cannabis dispensaries. These uses require a different “medical clinic” special permit from the ZBA in Salem and are permitted in all business districts with such a permit. There is no cap on the number of medical dispensaries, though they still must receive a letter of a non-opposition or support from the City to receive their DPH license and therefore are expected to negotiate a HCA and provide some level of community impact payment. They do not need to go through the HCA application process that retail establishments must, however. Medical cannabis is not subject to the state or local excise tax, either.
Where can I find out more about cannabis in Massachusetts?
You can read more about retail cannabis at the CCC’s FAQ and about medical cannabis at this state website.