At the July 20, 2020 Village Board meeting, a majority of the Board voted to permit PharmaCann Inc. d/b/a Verilife (“Verilife”) to operate an Adult-Use Cannabis Dispensing Organization at its existing medical cannabis dispensary located at 1816 S Arlington Heights Road, Arlington Heights, IL pursuant to a Pilot Program. The Village Code currently prohibits adult-use cannabis dispensing organizations. In order to allow this Pilot Program, the attached ordinance grants an exception to the prohibition for the 18 month period of the Pilot Program.

The ordinance sets forth the time period of the Pilot Program, the hours of operation for the business, and the requirement that several parking studies be conducted by Verilife. In addition, because the Village cannot start collecting Municipal Cannabis Retailers’ Occupation Tax until January 1, 2021. Verilife has agreed to pay the Village an amount equal to 3% of the gross receipts from the sales of adult use cannabis from its onset of the Program through December 31, 2020. This is intended to be the amount the Village would have received had the Village’s tax been in place in 2020.

The ordinance also establishes that the Village Board will determine, no later than December 31, 2021, whether Verilife will be permitted to continue to operate an Adult-Use Cannabis Dispensing Organization. If the Board decides to let the operation continue, the Village Code will need to be amended prior to the expiration of the Pilot Program. If the Village Board determines that the Business shall not be allowed to continue, the Program will end on February 28, 2022. The Business will no longer be allowed to operate at the Site after that date and the permission granted by this Ordinance will expire.

Also on the agenda is an ordinance imposing a 3% Municipal Cannabis Retailers’ Occupation Tax. As long as this ordinance is adopted and submitted to the State before September 30, 2020, the State will begin collecting the tax as of January 1, 2021.

Recommendation

It is recommended that the Village Board approve the attached Ordinance Granting an Exception by Approving a Pilot Program.