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* WTTW…
That priority to medical marijuana dispensaries means the first waves of Chicago’s pot shops are all white-owned, according to Black Caucus Chairman Ald. Jason Ervin.
“We are concerned about the lack of African American participation, which stands currently at zero. And we’ve not heard any plan from the state or from anyone to change that … so I think as a city that is a majority minority, to see that a half a billion dollar industry has no participation from two of the city’s largest communities I just think is wrong,” Ervin said. “The reality is that today I think that the state should create a system that would ensure African American ownership from the start … They want us to participate in the consumption but don’t want us to participate in the growing and the distribution of it.”
* But proponents of the new law regularly point to Ohio…
A judge has declared that a provision in Ohio’s medical marijuana program that 15 percent of licenses go to minority-owned groups is unconstitutional.
* There are folks out there who are doing more than just complaining, however…
Ron Holmes and Kareem Kenyatta established their business, The Majority-Minority Group, to help applicants navigate the complicated – and expensive – process.
“Social equity kind of a buzzword that’s floating all over the country. Everyone’s going to have a different definition. For me it just means that the black corner boy can have the same opportunity that the white VC guy with the corner office can have,” Holmes said. “We want to make sure that we’re providing not just an equal amount of licenses to folks but also trying to repair and restore communities that have been disproportionally impacted by the war on drugs.”
* More from ABC 7…
Two social equity groups are pushing to get minority business owners involved in recreational marijuana sales in Illinois.
Neffer-Oduntunde Kerr is one of 30 people chosen Sunday as part of a 6 weeks’ long training process sponsored by two organizations aiming to add diversity to the upcoming Illinois’ marijuana industry.
Kerr is a single mother currently working multiple jobs while attending graduate school. She said this new opportunity presents promise and equity that she hasn’t seen very much of in her own community. […]
The [people] chosen on Sunday will now move on to the competitive process to apply for state-issued adult-use licenses, with both 4th MVMT and Majority-Minority helping them along the way.
Holmes and Kenyatta could’ve just submitted their own applications and cashed in. Instead, they’re doing this. And, yes, they’re getting paid, but they’re also doing some real good work.
posted by Rich Miller
Friday, Nov 22, 19 @ 10:28 am
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Two great guys.
Comment by Wilson Friday, Nov 22, 19 @ 10:37 am
== the state should create a system that would ensure African American ownership from the start … ==
I’m not sure what Ervin is getting at here. How exactly would the state guarantee something like that? It’s not like we have an administration that is unfriendly to the African-American business community. If it was just a matter of the state blocking otherwise qualified African-American ownership applicants, or limiting the number of licenses and only granting them to white-owned businesses, then sure the state could “guarantee“ something. Does he want the state to just waive any application fees and required paperwork for what Holmes refers to as “the black corner boy”? If any applicant cannot afford the application fees and can’t navigate the complicated paperwork, I’m not sure they’d be very successful in operating this kind business anyway. It’s not like the banking limitations and dealing with federal regulatory issues on cannabis are going to be easy to navigate
Comment by Lester Holt’s Mustache Friday, Nov 22, 19 @ 10:52 am
I saw the WTTW show. What struck me was the state is asking for a $5,000 non refundable application fee? How fair is that. And that there are now consultants to help fill out paper work that may charge up to $10,000. How are ordinary people or people from impacted areas supposed to afford that.
And given what is going on in the state I would like to see who the consultants are that help with the paper work and to see if they are on some type of magic list.
Comment by DuPage Saint Friday, Nov 22, 19 @ 10:53 am
How silly. Are you willing to argue that there are no minority businessmen or philanthropists who could fund the startup costs for a (insert preferred minority group here) owned pot shop?
The fees are the fees. If this is such an important issue, pass the hat and move forward with your application.
After all, as we all know Illinois needs the money.
Comment by Plutocrat03 Friday, Nov 22, 19 @ 11:20 am
DuPage Saint - If an applicant can’t afford $15k in application costs, where will they get the money to build out the pot store or even buy their inventory?
Comment by TominChicago Friday, Nov 22, 19 @ 11:27 am
These two are truly wonderful guys who put their time and money on the line to make a difference. I’ve seen the hours they are spending on this and it would blow most people away. Kinda makes you reconsider the notion that all lobbyists are greedy.
Comment by Southsider Friday, Nov 22, 19 @ 11:29 am
It will be important for future dispensaries to have insurance.
Comment by Davesurance.com Friday, Nov 22, 19 @ 11:37 am
@TominChicago - The problem is you can’t get traditional loans or small business loans to get started since banks can’t loan to these businesses. And underserved and minority communities do not have the family friends or trust funds that they can access to put up the cash necessary to get started.
Other states invest in startups. I don’t see why Illinois couldn’t invest in minority-owned startups as well.
Comment by Chicagonk Friday, Nov 22, 19 @ 11:39 am
Alderman Ervin is being willfully ignorant. If he would just read the bill, he would see all the effort that went into changing this. It’s simply not true that there is “no state plan”. There is a plan and now it’s a law and before it’s even off the ground, he wants to kill it. There is plenty of work to do, and there are a lot of people doing it to get ready while he’s pounding his chest and blowing hot air.
Comment by Sideline Watcher Friday, Nov 22, 19 @ 11:40 am
It is refreshing to see folks actually walking the walk when it comes to social equity. I’ve been becoming increasingly frustrated lately that people who tout “equity” have warped that concept into just requiring a token woman or person of color be hired/appointed, etc to check a box for their own talking points.
Comment by Centennial Friday, Nov 22, 19 @ 11:43 am
If only Ervin knew someone who could’ve been in negotiations. Someone who was in the state legislature. Like his wife. But instead she spent the months running for a different office. Of course, none of that stopped Jason Ervin himself from advocacy or organizing.
Comment by Precinct Captain Friday, Nov 22, 19 @ 12:10 pm
Not to be an apologist for the guv… but in a statement this week he made the point that the money raised from the small number of first round licenses was going to be used to fund loans for backing the social equity applicants needing help to apply for the much larger second round. That’s not nothing, and of course it remains to be seen if it works out the way it is supposed to.
Comment by well now Friday, Nov 22, 19 @ 12:18 pm
==- Davesurance.com - Friday, Nov 22, 19 @ 11:37 am:
It will be important for future dispensaries to have insurance.==
Bravo, whoever you are
Comment by Lester Holt’s Mustache Friday, Nov 22, 19 @ 12:38 pm
Calling the bank of Mr. Willie Wilson. He’s a successful entrepreneur who has built and maintained business.
Comment by Rudy’s teeth Friday, Nov 22, 19 @ 1:05 pm
Rich, great point
Holmes’ LinkedIn page states he recently completed and received his MBA.
Could he have cashed in at a Fortune 100 ? Maybe.
Did he instead look around and help others while helping himself ? Absolutely.
Comment by Scott Cross for President Friday, Nov 22, 19 @ 1:07 pm
A judge in Ohio is not the same as a judge in Illinois and since Illinois had some of the worst racial disparities in arrest and convictions for drug crimes (not just cannabis) one could argue that there is a case for a carve out for minority licenses. I agree that Ald. Ervin should have done more when the legislation was being negotiated since the negotiations were dominated by the current industry.
Comment by Kentucky Bluegrass x Featherbed Bent x Northern California Sinsemilla Friday, Nov 22, 19 @ 3:43 pm