Real State Developer Claims Pontiac Delayed Medical Marijuana Permits, Files $60M Lawsuit

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A real estate developer filed a lawsuit against the city of Pontiac, Michigan, citing delays in receiving state medical marijuana licenses.

In 2019, Rubicon Real Estate Holdings entered into a purchase agreement for a former Kmart site, which a year later was rezoned to allow for cannabis businesses, according to Crain’s Detroit

As part of the development agreement, there would be two medical marijuana (MMJ) licenses. But the City Clerk denied issuing MMJ grower and processor permits, claiming the property was not zoned for marijuana businesses.

Rubicon alleges in its lawsuit, filed in Oakland County Circuit Court, that the city of Pontiac delayed issuing a permit for almost four years, causing the developer’s lender to withdraw some $45 million in loans.

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This led to the loss of several tenants for the proposed development, reported the Green Market Report.

$60M In Damages And Legal Fees

The plaintiffs are asking for about $60 million in damages and legal fees associated with the property’s failure to develop.

Moreover, they also allege violations of equal protection, due process, the First Amendment, and the Fifth Amendment.

Lance Boldrey, partner and cannabis attorney at Detroit-based law firm Dykema Gossett PLLC, recently noted a few keys to avoid lawsuits, such as unlimited licensing, replacing scoring systems, and using zoning to limit market participants.

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