Mayor Lungo-Koehn Signs Host Community Agreement with City’s First Marijuana Cultivation Establishment

Mystic Cultivate, LLC. approved to set up marijuana cultivation site on Mystic Avenue.

As part of community benefits, Mystic Cultivate will make annual donations to the Medford Public Library.

The City of Medford has officially signed a Host Community Agreement with its first marijuana cultivation establishment. Mayor Breanna Lungo-Koehn recently signed a formal agreement with Mystic Cultivate for a cultivation site to be located on Mystic Avenue. The Host Community Agreement covers a five-year period. Mystic Cultivate now joins recreational businesses Theory Wellness and Sanctuary Medicinals as the third marijuana company to enter into a Host Community Agreement with the City.

Mystic Cultivate will need to obtain Special Permit approval from the Zoning Board of Appeals before they can begin operation. They are also subject to approval from the state’s Cannabis Control Commission.

As with the prior agreements with Theory Wellness and Sanctuary Medicinals, the leadership at Mystic Cultivate made it a priority to hire Medford residents whenever possible and has agreed to Mayor Lungo-Koehn’s requirement that at least 50 percent of its employees will be women, at least 35 percent of employees will be of diverse backgrounds, and at least 5 percent of employees will be military veterans (to the best of their abilities). Priority will also be given to local vendors whenever possible for resources and materials.

As part of the Host Community Agreement, Mystic Cultivate has agreed to support the Medford Public Library with annual donations of $35 thousand. The City will also be collecting 3 percent of gross sales on a quarterly basis per the agreement.

“By entering into this agreement with Mystic Cultivate, we’re expanding our commercial tax base, securing a substantial financial investment in our public library and providing our residents more job opportunities,” Mayor Breanna Lungo-Koehn said. “Much review, thought and consideration goes into the entire process, including each clause of this Host Community Agreement. I know Mystic will be a valuable and upstanding partner to Medford and I’m glad to see them invest in our community.”

CEO of Mystic Cultivate, Brian Zarthar, echoed similar sentiments sharing, “I want to thank Mayor Lungo-Koehn for her leadership and vision for the future of Mystic Avenue. By signing the Host Community Agreement, my team and I have proudly entered a long-term partnership with the City of Medford.  As part of that agreement, we will support the Mayor’s vision, generate city tax revenue, and provide significant job opportunities for Medford residents.”

Medford voters approved recreational marijuana dispensaries (with regulations) in a citywide election in November 2016. The Medford City Council began working on an ordinance in 2016 and approved zoning amendments to support the siting of these dispensaries, in September 2020, with a vote to adopt a Cannabis Advisory Committee in November 2020. A Committee was convened and began its process in February 2021 with final recommendations submitted in Fall 2021. The Mayor signed the first retail marijuana CHA in early March, and the second in late June.

Under City Ordinance, the Mayor may negotiate up to three Host Community Agreements for retail marijuana dispensaries.

MARIJUANA DISPENSARY / CANNABIS ADVISORY COMMITTEE FACTS:

Timeline of selection and approval process:

• November 2012: Medical marijuana approved in MA by voters
• December 2015: City of Medford administration presented a draft medical marijuana ordinance to City Council
• November 2016: Recreational Marijuana legalized (with regulations) in MA by voters, and an amendment sent to the Medford City Council. Medford voters supported Question 4 with 56% voting in support of legalizing marijuana, with regulations.
• July 2020: Proposed Zoning Amendment submitted for review to the Medford Community Development Board
• September 2020: Final Zoning Amendment adopted by City Council
• November 17, 2020: Cannabis Advisory Committee ordinance adopted by City Council
• February 11, 2021: Cannabis Advisory Committee holds first meeting
• March 5, 2021: Cannabis Advisory Committee released application requirements and scoring criteria for the marijuana retail license.
• April 30, 2021: Applications received by the Office of Planning, Development, and Sustainability from 10 applicants.
• May 20, 2021: 10 applications presented to, subsequently approved by CAC following staff review.
• July 2021: Community outreach meetings held by applicants for proposed retail establishments
• October 13, 2021: Cannabis Advisory Committee voted on final rankings for all nine final applicants
• October/November 2021: Final rankings and information presented to the Mayor
• The Mayor signs the first retail HCA in March 2022.
• The Mayor signs the second retail HCA June 2022.

HOST COMMUNITY AGREEMENTS

• Per City ordinance, recreational marijuana establishments are only allowed in districts zoned as “Commercial II” or “Industrial.”
• Per City ordinance, recreational marijuana establishments may not be located within 500 linear feet of any K-12 school.
• It is the Mayor’s discretion to accept rankings and to negotiate Host Community Agreements. Per City ordinance, up to three licenses may be granted.
   

TAX REVENUE

Per state regulations, the City has the option to establish a 3% excise tax on retail sales from each permitted establishment. In addition, the City may seek up to an additional 3% of gross retail sales as a Community Impact Fee through the Host Community Agreement. The Community Impact Fee, limited to a term of 5 years, is intended to mitigate any impacts from retail establishments. (For example, a community may consider using the Community Impact Fee revenue to offset permitting and inspection costs or to address roadway conditions as a result of increased traffic to the area.)

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