Organa Brands did not correctly apply for license

Mar 10, 2020

Organa Brands has announced that it will not be opening a marijuana manufacturing plant in the old Tremont Nail Factory -- news which delivers a blow to plans to rehabilitate the dilapidated complex. The company attributed their decision what a spokesman described as the Cannabis Control Commission’s failure to approve its application for an extended period of time. 

However, the company failed to properly submit its application, according to a commission spokesperson, so the commission was unable to approve it. 

The company first applied in March 2019, and received a request for more information from the commission in October. 

Organa Brands submitted the additional information to the commission and requested that the commission reopen its application in November.

The commission requires applicants to resubmit complete applications, including the additional information, which Organa Brands did not do.

“They never submitted what they needed, and the state kept asking but it never happened,” Selectman Alan Slavin said at Tuesday night’s Board of Selectmen meeting. “So the idea that the Cannabis Control Commission caused the issue is not the case -- it’s the other way around.”

The company, 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. 

Built in the 1970s, the warehouse is the newest building on the 7.2-acre property. The Tremont Nail Company, which since 1819 had manufactured cut nails and other products, sold the site to Wareham in 2004. It was purchased using Community Preservation Act funds. The act is a Massachusetts law that allows participating cities and towns to adopt a real estate tax surcharge, supplemented by state matching funds in order to fund community preservation.

The buildings have largely sat empty since that purchase. 

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.

The company planned to process 60 to 90 pounds of marijuana a day into products such as edibles. The facility would employ at least 50 people, and in 2018, the developers said that those employees would be paid at above-market rates, and would receive full benefits.

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.

Organa Brands did not respond to repeated requests for comment.