Retail sale of cannabis, medical marijuana sales in O’Fallon remain up in the air
A ban on recreational cannabis retail sales will remain in place if the O’Fallon City Council passes an amended ordinance Monday.
However, the council may allow wholesale cultivation and transportation ancillary businesses and has opened the door for medical marijuana sales.
In a non-binding advisory referendum March 17, voters were 52.7 percent in favor (2,750 votes) and 47.3 percent against (2,487), with 5,237 votes cast to allow adult-use cannabis business establishments within the city limits. That is about 23.5% of registered voters. O’Fallon’s population is near 30,000.
This current ordinance under consideration, passed on first reading at the June 15 council meeting in a 12-2 vote, does not allow dispensaries for recreation use and will be effective immediately. Because it is an amended ordinance, the sunset provision established in the previous Sept. 16, 2019 ordinance, is no longer a factor.
However, such wholesale businesses not open to the public as infusers (infuses products such as edibles with cannabis extract), transporters (transports cannabis between business licensees), craft growers (can grow between 5,000 and 14,000 square feet of canopy space and may be separately licensed as an infuser) and cultivation center (can grow up to 210,000 square feet of canopy space) would be allowed.
Community Development Director Ted Shekell told the Community Development Committee on June 22 that since the first reading, a regulation was found — already in the city’s Zoning Code based on state law — that allows for planned use in the industrial district. That means these potential properties for cannabis uses will be limited to the area southeast of Scott-Troy Road and U.S. 50 intersection near Rieder Road. They cannot be closer than 1,000 feet to any residence, residential property, park, school or church.
The new ordinance is a response to the original Sept. 16 decision that prohibited the sale and cultivation of recreation cannabis — with a sunset provision that expired six months after election results were certified, if an advisory question was placed on the March 17 primary ballot — in case they wanted to change their minds. The election results were certified in April, which meant the provision expired in October.
Since then, arguments about lack of voter support and people staying home during the coronavirus outbreak have occurred. O’Fallon turnout at past elections: 11.5% in 2019 for the municipal election and 73.6% in 2016 for the presidential election.
The controversy has sparked debate because despite low voter turnout, the result is response from the citizens. Several residents have suggested putting the matter on the November ballot, because a presidential election draws more voters. And a group supporting sales has talked about circulating a petition for it to be considered in November election.
After the election results in March, the council resumed the conversation in May. In a straw vote at the CDC meeting May 11, some aldermen wanted the ban to remain in place, but other aldermen favored the wholesale businesses, indicating that cultivation and transportation categories would be allowed.
CDC meeting produces varying opinions
However, at the CDC meeting on June 8, there appeared to be two aldermen who indicated they may be leaning toward changing their vote to completely prohibiting adult-use cannabis. In a retake of the straw poll, five aldermen voted to completely ban adult use cannabis, six aldermen voting to allow for the transportation and cultivation of cannabis, one alderman not electing to vote and two aldermen not present.
The ordinance presented at the June 15 council meeting prohibited all recreational cannabis sales but an approved amendment proposed by Alderman Todd Roach now bans only retail sales at dispensaries.
City staff has determined that no additional zoning amendments are necessary at this time should the council approve the second reading.
Alderman Kevin Hagarty, who supported both retail and wholesale establishments, said the amendment is a compromise, and he favors passage Monday of the amended ordinance.
Hagarty, Roach support medical marijuana establishments
“This is a big issue that shouldn’t be taken lightly. We need to listen to the majority of the public. This is my third term, and I have always been a voice for my ward. I can’t speak for all residents, but the people I have talked to, want it and want medical marijuana sales in O’Fallon. If they rely on it, they shouldn’t have to drive to Collinsville or Sauget,” he said.
Both Hagarty and Roach supported medical marijuana establishments, which is included in the ordinance, but no details have been set. Aldermen decided to discuss this at another time.
Monday’s city council meeting will take place on Zoom, with registration required. Mayor Herb Roach said determining how the council chambers can be set up for social distancing requirements is in the works but will not be ready by July 6.
On June 15, the 12-2 vote for prohibiting retail-only sales was as follows: Aldermen Jerry Albrecht, Matthew Gilreath, Kevin Hagarty, Matthew Gilreath, Ray Holden, Jessica Lotz, Mark Morton, Christopher Monroe, Nathan Parchman, Todd Roach, Ross Rosenberg, Dan Witt, yes; and Aldermen Gwen Randolph and Dennis Muyleart no.
Citizens present their take on marijuana issue
At the June 15 meeting, held as a webinar on the Zoom videoconferencing tool, about 15 citizens expressed pro and con opinions. Those in favor of retail sales said they were upset at aldermen who supported the ban for not taking the favorable results of the March 17 non-binding advisory referendum into consideration. They said the people’s vote should count. Those not in favor mention that it is not a representative vote.
Speakers cited tax revenue for the city and worried about perceptions that crime would increase with an influx of out-of-towners, and that the businesses are highly regulated. Some argued that alcohol was more of a societal problem than marijuana.
In seeking an amendment, alderman Roach argued that the city, while they would not get tax revenue for cultivation and transportation, would benefit from bringing jobs to the area, which is property tax for the schools, and “they shop in our stores, get gas, eat at our restaurants, and that brings tax revenue in,” he said.
Aldermen approved the amendment in a 8-6 vote. Voting yes were: Hagarty, Morton, Muyleart, Parchman, Roach, Rosenberg, Vorce and Witt. Voting no were: Albrecht, Holden, Lotz, Gilreath, Monroe and Randolph.
More about legal cannabis
On June 25, 2019, Illinois Gov. J.B. Pritzker signed the Cannabis Regulation and Tax Act, making the state the 11th one in America to legalize the recreational use of cannabis. It went into effect Jan. 1.
In the state, that means consumption of cannabis for recreational use is no longer prohibited. It is allowed on private property and potentially, specifically designated establishments, such as smoking lounges. But it is not allowed in public places, schools and childcare facilities, among others.
Under the law, municipalities may not restrict the private consumption of cannabis but could adopt and enforce local ordinances to regulate possession and public consumption so long as the regulations and penalties are consistent with the action.
Types of wholesale marijuana businesses
The types of wholesale businesses not open to the public that would be allowed regarding cultivation and transportation of adult-use recreational cannabis include:
Adult-use cannabis craft grower
A facility operated by an organization or business that is licensed by the Illinois Department of Agriculture to cultivate, dry, cure and package cannabis and perform other necessary activities to make cannabis available for sale at a dispensing organization or use at a processing organization, per the Cannabis Regulation and Tax Act, (P.A.101-0027), as it may be amended from time-to-time, and regulations promulgated thereunder.
Adult-use cannabis cultivation center
A facility operated by an organization or business that is licensed by the Illinois Department of Agriculture to cultivate, process, transport and perform necessary activities to provide cannabis and cannabis-infused products to licensed cannabis business establishments, per the Cannabis Regulation and Tax Act, (P.A.101-0027), as it may be amended from time-to-time, and regulations promulgated thereunder.
Adult-use cannabis infuser organization or infuser
A facility operated by an organization or business that is licensed by the Illinois Department of Agriculture to directly incorporate cannabis or cannabis concentrate into a product formulation to produce a cannabis-infused product, per the Cannabis Regulation and Tax Act, (P.A.101-0027), as it may be amended from time-to-time, and regulations promulgated thereunder.
Adult-use cannabis processing organization or processor
A facility operated by an organization or business that is licensed by the Illinois Department of Agriculture to either extract constituent chemicals or compounds to produce cannabis concentrate or incorporate cannabis or cannabis concentrate into a product formulation to produce a cannabis product, per the Cannabis Regulation and Tax Act, (P.A.101-0027), as it may be amended from time-to-time, and regulations promulgated thereunder.
Adult-use cannabis transporting organization or transporter
An organization or business that is licensed by the Illinois Department of Agriculture to transport cannabis on behalf of a cannabis business establishment or a community college licensed under the Community College Cannabis Vocational Training Pilot Program, per the Cannabis Regulation and Tax Act, (P.A.101-0027), as it may be amended from time-to- time, and regulations promulgated thereunder.