Brookville planning commission member Jeff Wright expressed concern with the low amount of revenue the city would receive if city council issued a permit allowing Paragon Development, a medical marijuana cultivation facility in Bethel Township in Miami County, to set up operations in a building on Carr Drive.
Terry Baver | The Register-Herald
BROOKVILLE — Planning commission June 20 voted 5-2 against a motion containing an amendment on its final recommendation to council on the proposed ordinance that designates the location where marijuana can be cultivated, processed and laboratory tested and prohibits the selling of cannabis in the city.
Proposed ordinance 2024-29 would permit marijuana cultivators, processors and testing facilities to operate in I-2 (General Industrial District) in the city of Brookville.
The proposed ordinance would also continue to prohibit retail dispensaries for adult-use cannabis and medical marijuana from locating in any zoning district in the city of Brookville.
The motion made at the planning commission meeting contained an amendment that recommended the issuance of a permit by council to a company that has expressed interest in setting up marijuana cultivation, processing and testing operations in an empty building located on Carr Drive, which is located in the I-2 district.
Voting against the motion were planning commission chairman Ryan Henderson, councilmember Curt Schreier and planning commission members Ken Claggett, Jeff Wright and Tony Ezerski.
Voting in favor of the motion were mayor Chuck Letner and planning commission member Damian Kristof.
The company seeking the permit to locate in Brookville is Paragon Development, a medical marijuana cultivation facility located at 9292 S. state Route 201, in Bethel Township in Miami County.
The company is owned by Jason Wilson.
Paragon Development Business Manager Mark Nelson said his company began eyeing the building in Brookville because the Bethel Township location is not large enough to meet all the company’s needs.
“This will be a secondary site,” Nelson said of the Carr Drive building.
Nelson noted it was determined “it would be more cost-effective to move to an existing facility” than to build a building.
Nelson said the Carr Avenue building meets the company’s needs.
“This is the perfect building for us,” Nelson said, adding the building is suitable for future expansion.
Law director Rod Stephan told planning commission the company plans to invest a little more than $3.5 million in the building in phase one.
“They are seeking a Level 2 cultivation license which will allow them to add additional square footage, so, if they get that Level 2 license, they will be expanding again,” Stephan said.
“The second phase will be almost a $4.7 million investment,” Stephan noted.
Stephan said there will be 54 employees in the first phase and up to 85 employees in the second phase.
Stephan also noted “the city is not putting any money in the project or offering any kind of abatement.”
Stephan said city manager Jack Kuntz, fire chief Ron Fletcher and he recently visited the Bethel Township facility.
“It was a very impressive operation. It was a highly secured building,” Stephan said.
“I feel confident and staff feels confident that it is a good business,” Stephan added.
Stephan noted the company hopes to receive the permit from the city so the building can be purchased before the company’s real estate contract with the building’s owner expires on Tuesday, July 9.
Stephan said if the company doesn’t purchase the building, the building’s owner has someone who has expressed interest in purchasing the building for a storage facility.
“The seller is adamant about selling the building,” Stephan said.
Wright asked what kind of revenues will the city receive if Paragon Development begins operating in the building.
Stephan replied he estimated the city will receive between $40,000-$60,000.
Wright indicated the revenue the city will receive seems low.
Claggett said he wondered why the city is considering allowing the company to locate in Brookville.
“I just don’t see why we need this. Are we that desperate for $40,000 that we want this kind of thing in our community? I don’t even understand why we’re considering this,” Claggett said.
“I’ve been against this from the beginning. I don’t think Brookville needs to be growing marijuana,” Claggett continued.
Henderson expressed similar comments.
“You are not alone. I have this same fear. Approving this will attract marijuana in other locations. We can’t stop dispensaries in the neighboring towns,” Henderson said.
“How relative is the $40,000-$60,000 to our financial budget?” Wright asked.
“It’s a small percentage. Right now we have an industrial building that’s been sitting there a few years with water damage,” Stephan replied.
“I understand this is a process you (planning commission members) may be philosophically opposed to. I understand that if you are voting no because of that,” Stephan said.
“But in terms of opening up an industrial building that is empty right now, that revenue will help us. If you want to look at it in terms of property tax, it’s like passing a half mill. And if you do that one building at a time, it does help the overall budget,” Stephan said.
“I’m not voting philosophically. I’m voting what the community might want and what the community could benefit from it,” Wright said.
Wright said he doesn’t want to jeopardize the real estate contract Paragon Development has with the owner of the building.
But Wright indicated more time is needed to see if city staff can negotiate with the company in an effort to receive more benefits before council gives approval to locate in the city.
Reach Terry Baver at [email protected].
