* Politico…
Turns out Ald. Jason Ervin and some members of the Black Caucus may not be the only ones supporting a delay in selling recreational marijuana in Chicago. Lobbyists for two white-owned cannabis companies would benefit if Chicago held off on selling cannabis.
MedMen Enterprises, which has an Oak Park dispensary, and Green Thumb Industries (GTI,) with dispensaries in Joliet and Naperville, have a heavy lobbyist contingent in City Hall this week as aldermen debate whether to push back the sale of recreational weed until July 1 in an effort to ensure diversity among dispensary ownership.
MedMen and GTI don’t have an immediate stake in a Jan. 1 opening in Chicago. So why should they care when sales begin?
The two companies are in line to open secondary dispensary locations in Chicago in mid-2020. They’re currently going through the zoning and start-up process, which takes months. By delaying Chicago’s start-date for recreational sales, MedMen and GTI would be able to open at the same time as the current dispensary owners — Cresco Labs, Columbia Care and 4Front.
OK, that may well be true, but it misses the point that Oak Park is on Chicago’s border. If the city’s implementation is delayed, MedMen’s Oak Park dispensary is gonna do blockbuster business.
* Sun-Times…
Chicago sales of recreational marijuana would be pushed back until July 1 under an ordinance that squeaked through a City Council committee Tuesday at the behest of black aldermen demanding diversity among dispensary ownership.
The 10 to 9 vote by the City Council’s Committee on Contract Oversight and Equity was a political embarrassment to Mayor Lori Lightfoot, whose administration tried desperately to appease the Black Caucus during negotiations that continued during the meeting. […]
Ald. Gilbert Villegas (36th), the mayor’s floor leader, was asked whether there are 26 votes in the full City Council to approve the six-month delay.
“Looking at the roll calls, I think right now the votes are there to have a delay, yes,” Villegas said.
* Tribune…
After the vote, Lightfoot released a statement saying her administration’s been working with the Black Caucus to make changes and criticized them for the vote. Delaying sales, Lightfoot said, “will have a multitude of unintended consequences, including fueling illegal sales, placing the start of a new industry at the same time when our full public safety resources must be dedicated to combatting summer violence, and most importantly, stripping money from the social equity funds intended to benefit Black and Brown entrepreneurs.”
“I have repeatedly asked the members of the Black Caucus to devise a strategy that addresses equity. Instead, we have primarily been met with a litany of complaints, but no tangible solutions. Crossing our arms and walking away is a tactic, not a strategy and is not only unacceptable but irresponsible,” Lightfoot added. “We have a tremendous opportunity to come together to do the work necessary to fulfill our vision of truly equitable legalization. Cannabis will be legalized across the State of Illinois starting on Jan. 1, and I have no intention of Chicago being left behind. It is unfortunate that the Black Caucus has chosen to remain on the sidelines.” […]
In particular, they are upset that the 11 medicinal cannabis dispensaries that get to immediately expand to recreational sales on Jan. 1 under state law are overwhelmingly white-owned establishments. And the early returns on other applicants for recreational licenses in Chicago show few minority owners.
“We would never, as a body, allow anything to pass through this with this magnitude of economic impact, and not have (minority) participation,” [Black Caucus Chairman Jason Ervin] said during an earlier hearing on his ordinance. “Every bond deal that goes through here, we’re hawks on if there’s African American, Latino participation. Every other type of financial transaction that comes through this body, we have these same questions, and this same question needs to be asked about … adult-use cannabis here in the city of Chicago.”
* Um, alderman, do you remember this 2017 story?…
A strip club owner and trucking executive plans to open a medical marijuana dispensary soon just south of the Illinois Medical District.
After nixing plans to open in Fulton Market, businessman Perry Mandera plans to open The Herbal Care Center, or THC Center for short, at 1301 S. Western Ave. in Chicago. […]
Ald. Jason Ervin (28th), whose ward includes the site, said he doesn’t have any objection to the dispensary opening there. […]
But under pressure from neighbors, Ald. Walter Burnett Jr. (27th) said in March 2015 the plan for a Fulton Market dispensary would be “very hard” to support, effectively killing it.
That dispensary, which Ervin approved in his ward after Burnett rejected it, is set to begin adult-use sales on January 1.
*** UPDATE *** Maybe cooler heads can eventually prevail…
*** UPDATE 2 *** Hmm…
*** UPDATE 3 *** This debate is really over the top…
*** UPDATE 4 *** Sales will commence on January 1st…
- Grandson of Man - Wednesday, Dec 18, 19 @ 9:22 am:
Hopefully the point is stressed that delaying sales will hurt social equity funding. Many more dispensaries will open in Chicago than in the initial rollout on January 1, and funding should be attained for social equity as soon as possible.
- @misterjayem - Wednesday, Dec 18, 19 @ 9:22 am:
“I have repeatedly asked the members of the Black Caucus to devise a strategy that addresses equity. Instead, we have primarily been met with a litany of complaints, but no tangible solutions.”
Ubi Est Mea, Mayor Lightfoot. Ubi Est Mea…
– MrJM
- Sam T - Wednesday, Dec 18, 19 @ 9:23 am:
Please stop with the identity politics.
This is a prime example how Chicago shoots itself in the foot.
- Ok - Wednesday, Dec 18, 19 @ 9:23 am:
This was always going to be the consequence of the compromise made last spring to allow medical dispensaries a head start.
Those types of decisions are a prototypical example of those that you need to make in order to get it through the Statehouse, but then create problems in City Hall.
You can’t attack Alderman Ervin and the Black Caucus for pushing this. He, and they, are not wrong on the issue that the industry will start and give a leg up to existing businesses, none of which are black-owned. That was, in effect, the intent.
What the Governor and his staff should have been doing the past several months is going out and doing a massive business outreach and entrepreneurship initiative so that businesses would be ready to go.
Even by June, there will probably not be black- and brown- businesses ready to go. These things take time, effort and money.
The fact that the early sales are needed to seed a fund that can then be used to pay for this stuff rings hollow. It is the same fiscal year, appropriate and spend the money you need in the first half of FY2020, and then repay GRF with the revenues that come in in the second half of FY2020.
The ideas his staff and their working groups come up with are only ingenious if they actually work.
- Oswego Willy - Wednesday, Dec 18, 19 @ 9:27 am:
=== “Looking at the roll calls, I think right now the votes are there to have a delay, yes,” (Ald. Gilbert) Villegas said.===
Mayor Lightfoot is a mess, to process, negotiations, and in the art of persuasion.
I will say Ald. Ervin is a confusing sort, speaking with ambiguity to wants, and confusing to his own history, but it seems he can get the floor votes to stall a no-brainer need for the city, and an issue seemingly addressed in the state legislation.
This will be fun theatre, while the border stores could make serious hay?
- LoyalVirus - Wednesday, Dec 18, 19 @ 9:27 am:
cutting off their noses to spite their faces
- Rutro - Wednesday, Dec 18, 19 @ 9:30 am:
If Lightfoot can’t block this she’s not running this city.
- Cassandra - Wednesday, Dec 18, 19 @ 9:35 am:
Looks like traffic and parking on the OP mall are about to get measurably worse.
- William Strong - Wednesday, Dec 18, 19 @ 9:36 am:
Alderman are tired of the mayor’s bullying tactics. “Unintended consequences”? They are very much intended.
- Lester Holt’s Mustache - Wednesday, Dec 18, 19 @ 9:38 am:
== In particular, they are upset that the 11 medicinal cannabis dispensaries that get to immediately expand to recreational sales on Jan. 1 under state law are overwhelmingly white-owned establishments. And the early returns on other applicants for recreational licenses in Chicago show few minority owners.==
“Overwhelming” isn’t the same as completely, so presumably at least one of the new dispensaries are minority-owned. And apparently few minorities have even applied for licenses. So Ervin and the rest of the caucus want to delay sales completely until when, exactly? When 25% of the new owners are minorities? 30%? 50%? Or 50% of new applicants are minority-owned? He doesn’t seem to be offering a plan of any kind, just complaints about low participation and a willingness to block at least one minority-owned business from opening. Lol Chicago dems, can’t do anything right
- supplied_demand - Wednesday, Dec 18, 19 @ 9:44 am:
Have these Aldermen done any outreach to business people in their Wards? This law passing wasn’t some big surprise. It seems they should have some groups ready to go with funding otherwise delaying doesn’t really solve anything.
- NotMe - Wednesday, Dec 18, 19 @ 9:47 am:
MedMen will also own the Evanston dispensary as a result of the end of their merger deal with Pharmacann. That’s a huge leg up for them at a time when they desperately need cash.
- WH Mess - Wednesday, Dec 18, 19 @ 9:50 am:
When you take away most of the other reasons folks ran for Alderman — influence on what gets built by the private and public sector, and what businesses get opened — then MBE participation is all they have left. Anyone who has ever gone through a Council hearing on any contract (including the former First Deputy of Procurement who now offices on the fifth floor) knows this.
The chest-pounding is at least half the point.
- XonXoff - Wednesday, Dec 18, 19 @ 9:56 am:
They could have just made it legal but like other states, decided to make it about tax windfalls and a new “industry.” Shock. The medical monoliths they handed it to are protecting the franchise. MedMen historically burns through cash so don’t expect them to play all nice and friendly-like. And I guess the black caucus is gonna black caucus. Good luck herding all these financially motivated cats. It didn’t have to be about money.
- A Guy - Wednesday, Dec 18, 19 @ 10:11 am:
Silly Aldermen…shooting their foot trying to get their spite weapon out of their holster. Jeesh.
- Jocko - Wednesday, Dec 18, 19 @ 10:29 am:
Has anyone checked to see if Alderman Ervin or members of the Black Caucus own shares in some suburban operation?
- Bertrum Cates - Wednesday, Dec 18, 19 @ 10:29 am:
= MedMen and GTI don’t have an immediate stake in a Jan. 1 opening in Chicago. So why should they care when sales begin? =
Are you kidding me, POLITICO?
- OneMan - Wednesday, Dec 18, 19 @ 10:31 am:
Well if you can’t get it in the largest city in Illinois come out to Aurora where our dispensery will be on Rt 59, convient to mass transit (take the BNSF puff the magic dragon special), our Napervillian neighbors (protect the brand and mellow-out dudes) and the tollway. Take the tollway to get your toke.
Aurora the City of Lights and the City of Light’em Up.
- Chicagonk - Wednesday, Dec 18, 19 @ 10:52 am:
I think the caucus is raising good points. Just because Illinois passed the most progressive bill in the country, doesn’t mean that the bill still doesn’t need improvements.
- Maryjane - Wednesday, Dec 18, 19 @ 10:54 am:
Imo this is the elephant in the room:
“…delaying sales, Lightfoot said, “will have a multitude of unintended consequences, including fueling illegal sales…”
Of course it is. The aldermen responsible have given the alternative Cannabis marketplace (the dreaded black market), and associated traditional unfortunate law enforcement actions in response, one heck of an endorsement, one that I believe is going to be impossible for them to ever retract.
- Dan K. - Wednesday, Dec 18, 19 @ 10:55 am:
That photo of the all-white male room at the city dispensary lottery last month was absolutely devastating for the cannabis industry’s cause. None of these companies can find a single woman or minority to partner with? How exactly do they think that will play in a city as diverse as Chicago? Even if a delay won’t really accomplish much (and it won’t), it’s easy to understand the anger of the Black Caucus.
- Sue - Wednesday, Dec 18, 19 @ 11:10 am:
This Mayor needs to crush these progressive lions before they destroy her mayorship along with the City of Chicago. Socialism shouldn’t be the City’s future
- Huh? - Wednesday, Dec 18, 19 @ 11:13 am:
Chicago ought to put a pot greenhouse on top of the cook county jail, staffed by the inmates. Have an experienced staff waiting for something to do.
- Bertrum Cates - Wednesday, Dec 18, 19 @ 11:31 am:
Nothing says politics quite like, “We need a piece of this. And if we don’t get a piece of this, no one should get a piece of this.”
- Soccermom - Wednesday, Dec 18, 19 @ 11:38 am:
Oh for heaven’s sake. The existing medmar licensees are setting up huge incubation programs for women- and minority-owned firms. They are supporting these MBEs in their applications for the first round of adult-use licenses.
You guys understand that this is a plant, right? And that it has to be grown in a highly specialized facility? And that it takes time to build said facility, and to grow the plants? It’s going to take close to a year for the new licensees to get up and running.
The freaking law was set up with a carrot and stick for existing licenseholders. The carrot is the six months of runway they get while the State expands the rec program. The stick is the requirement that they invest a big chunk of those early profits in supporting Social Equity Applicants.
All the big guys are bringing in minority and female partners for the next round. There will be plenty of people of color involved when the adult use licenses are issued.
Rich gets it right. This is just a play by the non-Chicago guys to scoop up sales from Chicagoans for six months. Let’s hope the Council doesn’t fall for it.
- Ok - Wednesday, Dec 18, 19 @ 12:39 pm:
Soccermom,
The risk of that carrot and stick bargain was always something like this happening. Maybe it was good enough to get the law passed at the state level, but not good enough to clear the local hurdle.
As someone who literally has no dog in this fight at all, I completely see where the black caucus is coming from. You can’t say it is all just a ruse over money (I am sure that is influencing it). But they are just fanning the flame that was already there.
- Grandson of Man - Wednesday, Dec 18, 19 @ 12:50 pm:
Motion is defeated. Smart move.
- @misterjayem - Wednesday, Dec 18, 19 @ 12:54 pm:
“Maybe cooler heads can eventually prevail”
Cooler heads… snicker…
– MrJM
- Billy Sunday - Wednesday, Dec 18, 19 @ 12:56 pm:
Ald. Ervin: does have anything to do with your wife (former Rep.) City Treasurer Ervin losing her security detail by Mayor/CPD Superintendent?
- Soccermom - Wednesday, Dec 18, 19 @ 1:04 pm:
OK — something like WHAT happening?
It’s absolutely true that the whole industry skews very white and male nationwide. Startup is capital-intensive, which has made it hard for minorities and women to get a foothold.
The Illinois law is designed to bring some equity to the industry here. So they set it up to create incentives for the existing players to find minority partners.
Those partners are not ready to operate yet, but they will be soon. Delaying in Chicago benefits the rich white guys who have suburban dispensaries — not the POCs living in the city.
- Lester Holt’s Mustache - Wednesday, Dec 18, 19 @ 1:35 pm:
Good for the city. I still don’t understand what Ervin and others are trying to do, other than complain and stir up resentment. Does he want the government to force private equity people to give money to folks who may not be qualified for this, simply because they happen to be women/minorities? Does he want the city or state to give out tax dollars to women/minorities that can’t afford the start up capital? Should the government just waive the application fees and paperwork for anyone who isn’t a white male?
Unless there’s another angle here like Jocko suggests, I just don’t get it
- Too Busy Running for Treasurer - Wednesday, Dec 18, 19 @ 2:38 pm:
“The irresponsibility of the Chicago City Council debate is jaw dropping. We spent years crafting legislation that puts social equity at the core of the recreational cannabis market. Those who say otherwise are patently wrong and are insulting to me and my colleagues.”
https://twitter.com/RepSonyaHarper/status/1207365817140158464
- Ok - Wednesday, Dec 18, 19 @ 2:44 pm:
Soccermom- ran the risk of a City of Chicago Black Caucus revolt happening.
- Rich Hill - Wednesday, Dec 18, 19 @ 3:16 pm:
Oak Park becoming the place where people travel to get intoxicants is an interesting reversal of the village’s history.
- Maryjane - Wednesday, Dec 18, 19 @ 3:31 pm:
Whelp… There you go. I’m delighted the matter has been settled. In retrospect, smoke clearing (ahem),perhaps I shouldn’t have taken them so seriously. Oh well, still new in town; lesson learned. I am thankful however and will commemorate the occasion appropriately.
- Lodestar - Wednesday, Dec 18, 19 @ 4:42 pm:
Let’s get this straight. Ald. Jason Ervin tried to halt sales in the name of equity. Pushed legislative maneuvers and forced the caucus he chairs to vote. The caucus broke and now there will be pot sales on January 1. Ervin ticked off state black caucus members, a deputy governor, and the governor. Then he forced his caucus to go on record when he couldn’t keep his caucus in line. As usual Jason overplayed his hand and all to get revenge for Melissa Conyears Ervin because Lori humiliated her in the Tribune. Someone should pull any floor speeches the distinguished Rep. Conyears Ervin gave on cannabis equity while the bill was being negotiated in Springfield. Let’s see them receipts!
Ervin made a lot of people angry today and it’s not clear to what end. Maybe his campaign disclosures in January will tell us something.
- Lodestar - Wednesday, Dec 18, 19 @ 4:58 pm:
Campaign disclosures will show who Ald. Jason Ervin might have been repping. Or this just may a case of anger at the mayor for taking Treasurer Conyears-Ervin’s detail away. Or it could be all of the above and the Ervin’s shilling for CTU. No matter what today was a bad day for the Ervins.
- Lodestar - Wednesday, Dec 18, 19 @ 5:01 pm:
One more thing on Jason Ervin. Was today worth angering JB, Christian Mitchell, Kelly Cassidy, Kim Foxx, Toi, and the Springfield black caucus? Lori won big today and Ervin hurt council independence with his petulant moves.