Organa Brand pulls out of Tremont Nail Factory
Organa Brands, the cannabis manufacturing company set to be the flagship tenant of the redeveloped Tremont Nail Factory, has announced that it is pulling out of the deal due to its inability to get a license from the state Cannabis Control Commission.
The company first filed an application with the commission on March 25, 2019, and that application has not yet been processed.
Organa Brands, now a part of international cannabis company Slang Worldwide, first expressed interest in the town-owned property in the summer of 2018.
Since then, they have negotiated a host community agreement and lease and done $300,000 in renovations to the steel building. The agreement negotiated between the town and the company included $184,000 in rent each year and up to $300,000 in income for the town, depending on the profits earned by the company.
Town officials had planned on using the rent money from Organa Brands to fund the rehabilitation of the rest of the Tremont Nail Factory complex. However, the company was set to begin paying rent when it received a license from the state, which hasn’t happened.
Town Planner Ken Buckland said that the company has not yet negotiated the end of its lease with the town.
“It’s disappointing,” said Selectman and Redevelopment Authority member Peter Teitelbaum. “On the positive side, we did get roughly $300,000 in repairs to the building.”
Those renovations, including a completely new skin, roof, windows, doors, and wiring, will make the building much more appealing to prospective tenants. Additionally, because it is still unfinished, that means that the new tenant would be able to customize the interior to suit.
Buckland said that he has heard of interest from some local businesses and businesses outside the town. Once more information has been gathered about the interest in the building, a new request for proposals, or RFP, will be issued.
“We want to make this a productive operation so it can start to support the renovation of the Tremont Nail Factory,” Buckland said.