Friends and neighbors –
The Iron Range Resources and Rehabilitation Board recently voted 5-3 to approve state funding for a cannabis grow facility near Grand Rapids. I was one of the three who voted no.
A few weeks ago, Rep. Davis and I asked for your feedback on the issue. Since then, I have had hundreds, if not thousands, of calls, emails, and personal conversations with people who live in the area about this facility. Let me tell you, the opposition has been intense. Nearly 80% of the calls and emails have been opposed to the project. The casual conversations I’ve had around town have been about the same.
The vote authorized $22 million in taxpayer funding for Hwy35 Cannabis – nearly 33% of the total cost of the project. It’s a staggering figure, and I question whether it is wise to encumber that amount of money on the project when we have no idea if they will even get the licenses they need and we don’t know what the regulatory environment will look like.
Beyond the funding concerns, there are too many unanswered questions and issues that give me pause:
- Why should 33% of the project cost be shouldered by taxpayers when our schools and towns have urgent needs? Is this an appropriate use of public funds?
- The regulatory environment is still uncertain because the cannabis bill was hastily passed into law without due diligence of the nuances and complexities involved. The Office of Cannabis Management will be responsible for clearing up the confusion via rulemaking, and we’ve seen what a mess that process has been in other areas – namely the mining industry.
- The funding process needs to be fair. Will other companies be given the same generous funding terms? And if not, why are we doing it in this situation? Why should this company get special treatment compared to other local employers?
- While the promise of new jobs is enticing, the industry experts I have talked with have serious doubts that the jobs we have been promised will ever materialize. The IRRRB even lowered Hwy35’s job creation requirements for loan forgiveness: They were originally required to create 200 jobs. Now they will need to hire just 150-170 jobs. Why lower expectations so soon? This drastic reduction raises doubts about their credibility. With our local employers already struggling to find enough workers, where will these employees come from?
- I also struggle with what the IRRRB has done for other companies. For example, L&M Supply recently received $2.5 million for a $55 million project. They are a well-respected local employer with a history here stretching more than 60 years. Why weren’t they given a comparable investment?
My vote was about being a wise steward of taxpayer dollars. There has not been enough careful, transparent deliberation about a project with many question marks, in a brand new industry with even more question marks. While economic growth is important, we cannot compromise responsible governance and community values in the process.
Which makes one wonder: Why is this being rushed? Licenses won’t be issued for a year and a half. We don’t yet know who will get licenses. We don’t know what the regulatory environment will look like. We should not encumber this huge amount of money this early in the process. It is a classic case of putting the cart before the horse.
Yet, since voicing my concerns I have been threatened, harassed, and intimidated by individuals involved with the project in a way that I haven’t been on any issue I can recall. It has been, frankly, stunning.
Now that the project has been approved, we have a duty to make sure the vetting continues, that taxpayer dollars are handled the right way, and that everything is above board. Despite my opposition to using taxpayer dollars, I will continue to work on this issue as the process continues.
Please know I appreciate you sharing your feedback, and I will always keep your best interests at heart.
Sincerely,