What’s at stake as lawsuit holds up Detroit recreational cannabis program

Under the city’s regulations, longtime residents and those with marijuana-related convictions or low incomes get first priority in the license review process for opening a cannabis business.

The new action Thursday shows the case is advancing, and that there’s more likelihood the plaintiff will succeed at trial.

Detroit City Councilman James Tate spearheaded creation of an ordinance over the course of more than a year that would establish the recreational, or adult-use, industry and aim to bring more Black Detroiters and longtime residents into the fold.

However, despite Lowe living in Detroit 11 of the last 30 years and her experience with marijuana — her mom was convicted in 2007 for a marijuana-related crime, and she’s been working in the cannabis industry — she doesn’t qualify for the legacy program.

The adult-use ordinance gives preference in a couple ways: It allows for up to 75 retail licenses in the city, and at least half of those must go to Legacy Detroiter applicants.

After the judge’s Thursday order, though, the city is offering to make changes to its rules.

“Obviously there are great concerns about this ordinance and whether it’s constitutional,” said Jeffrey Schroder, co-leader of Bloomfield Hills-based law firm Plunkett Cooney PC’s cannabis industry group.

In three to five years or less, Schroder predicts, a business won’t be able to hold out if they’re approved for just medical use.

Schroder said he respects the city’s goal.

Colett formed the Detroit Cannabis Project to address educational gaps in a complex industry, between regulatory and legal processes, access to capital and creating a viable business plan.

“So many people are interested in investing in Detroit,” Colett said, but investors don’t necessarily want to commit until they know what happens with this lawsuit.

Adult sales will become legal in Detroit and, regardless of when, she wants the businesses her incubator helps to be ready.

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