Wareham Town Meeting voters allow marijuana manufacturer to open in Tremont Nail Factory District

Oct 22, 2018

A Colorado-based marijuana manufacturer with a global reach got the green light to open in the historic Tremont Nail Factory District after the decision deeply divided voters at Town Meeting on Monday. 

Organa Brands plans to soon open a processing facility inside one building located at the 7.2-acre site on Elm Street following Monday’s zoning change approval. No marijuana will be grown and no marijuana products will be sold at the site. The change also allowed several other businesses, such as hotels, a brewery, distillery and artist studios, to open at the town-owned site. Officials have been working to attract businesses to the property for the past few years.

Voters debated the zoning change for roughly two hours, defeating a couple of attempts to prevent the zoning change from going forward, which would have delayed Organa Brands from opening until the issue was studied more. 

Town officials said the town-owned property has languished in the years since it was purchased in 2004 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.

Voters against the change argued the move wasn’t appropriate for the site and said it wasn’t properly vetted before Town Meeting. Those in favor said allowing the business to open would start bringing in much-needed funds for the town in general and to help revitalize the property.

Former Selectman Judy Whiteside said while she believed marijuana was “despicable” leaving money on the table was “dumb.”

“No one else is willing to pay that kind of rent,” said Whiteside. “My heart is being overridden by my head.”

The town is expected to receive $2.4 million over five years from Organa Brands pending the approval of a community host agreement by Selectmen. The funds will come through a mix of rent, donations and taxes.

According to Wareham Redevelopment Authority Chair Peter Teitelbaum, Organa Brands will pay $84,000 annually for rent, set to increase 3 percent each year and has agreed to give a $100,000 annual donation during each year of the agreement. The Redevelopment Authority is tasked with managing the site. Teitelbaum said all of that money must go into a fund dedicated to the maintenance and development of the Tremont Nail Factory complex, which still requires major upgrades.

Organa Brands also agreed to pay the town 3 percent of gross sales with an annual cap of $300,000. That money will go into the town’s general fund, which can spent for any municipal purpose, pending Town Meeting approval.

To reach the $300,000 cap Organa Brands would have to reach $10 million in sales at the Wareham facility. Teitelbaum said the company is projected to have sales well above that by the second year. At the end of five years, both town officials and Organa Brands must agree to renew the agreement if the business is to remain in the district. 

Several officials spoke in favor of the zoning change, including Town Administrator Derek Sullivan and Finance Committee Vice Chair David Heard.

“I know marijuana is an emotional subject for a lot of people,” said Sullivan. “But I can think of little worse than to let the site rot for another 14 years.”

Heard agreed.

“We can’t just keep putting money into it we need to get something out of it,” said Heard.

Residents Corey Tripp and Angela Dunham, who is president of the Wareham Historical Society, asked voters to eliminate language from the bylaw allowing the manufacture of marijuana at the site and to study the issue further, respectively.

Tripp said officials provided misinformation regarding how much money would be generated by the company. Dunham said changes to the bylaw drafted over several months required a closer look.

Dunham said while the changes “were not illegal they were not transparent either. The Planning Board should be required to hold a hearing.” She recommended revisiting the issue at Spring Town Meeting after study.

At one point, Moderator Claire Smith was asked to cancel a vote on the zoning change in light of the complaints. As moderator, Smith may decide if an agenda item can be put to a vote. She conferred with the town’s attorney Richard Bowen, who said in his opinion nothing leading up to Monday’s vote appeared to be illegal.

“We all know this is a very divisive issue and feelings run strongly both ways,” said Bowen. “The most important thing is for this to come to voters as a policy question…and for voters to express their will.”

Ultimately, voters approved the zoning change 307 to 72.

Due to the length of the discussion, Town Meeting was continued to Tuesday night at 7 p.m. in the Wareham High School auditorium where the remaining agenda items will be addressed. All registered voter may attend and participate.