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Bloom Brothers is one of three cannabis retailers that sued the city over 'unreasonable' host agreements. The council approved a settlement of $786,000 with the companies.

Pittsfield Settles on $786K Reimbursement in Cannabis Dispensary Lawsuit

By Brittany PolitoiBerkshires Staff
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PITTSFIELD, Mass. — The city will refund a sum of more than $786,000 to three local cannabis dispensaries for allegedly "unreasonable" Host Community Agreement fees, a lawsuit that has popped up around the state.

On Tuesday, the City Council approved the transfer and appropriation of $786,625 from free cash for the legal settlement that is years in the making. Temescal Wellness will receive $360,375, Berkshire Roots  $341,000, and  Bloom Brothers $85,250 as legal settlements for the repayment of a portion of fees collected between the fiscal years 2019 and 2022.

Officials report that Pittsfield has so far gotten the "best deal" in the state, representing a 77.5 percent reimbursement.  

"Like many communities in Massachusetts that were faced with the lawsuits for community host agreements, we had been served by all three cannabis companies and settled it," Mayor Peter Marchetti explained.

"We took all the information in the court into account and was able to negotiate the best deal so far that we've seen in the commonwealth."

He said the settling is less than what each of the companies paid into and if the city went to trial and lost, the reimbursement conditions would be "far greater."

This resolves the lawsuits filed by the dispensaries because they believed they were "not reasonably related to the costs imposed upon the city or incurred by the city" as a result of their operations. It also resolves the claims without an admission of liability.

The process began a few years ago when the first company came forward with the complaint, followed by the other two. The parties began aggressively negotiating this year, with the council going into executive sessions to receive updates.

There was reportedly double-digit interest incurring on a daily basis.

Last year, the Cannabis Control Commission approved changes to the state's adult and medical use regulations including policies that implement the agency's oversight of host community agreements, new equity requirements, and suitability reform.

HCAs must now be "reasonable," meaning that conditions can be required under local regulations, necessary for public health, and imposed on non-cannabis businesses. The new regulations also address impact fees, stipulating that the host community cannot collect them if the license is held for more than nine years.

Temescal Wellness, Berkshire Roots and Bloom Brothers were the city's first dispensaries before the litigation came forward and impact fees were done away with. Marchetti reported that one other organization paid the fees but has not come forward.


"We need to have a host community agreement, whether or not we charge fees that go with that is a different story," he said. "So we're in the process of putting ourselves in the safe harbor version of that host community agreement."

When asked his take on the fee structure, Marchetti said it would depend on the conditions and how it was set up.

"I think we all knew it was already starting to bubble to the surface," he said. "I guess the question was what were the cannabis companies going to do?"

Councilor at Large Earl Persip III was the lone vote against it because he simply did not agree.

"I don't agree that these local businesses who, when the Cannabis Control Commission came about and set all the rules, they were very willing and able to pay these fees, understood what the fees were for, they signed these agreements in good faith, and then when they figured out there was an issue with the law and how it was written is when they came back asking for money," he said.

"Now it's coming from the free cash and it's coming from the taxpayer and I don't agree with it."

Persip feels that the state should have reimbursed the companies.

"I think the state Legislature should have got off their buttons because they could have corrected this agreement for everybody and all the cities that are having this problem but they're scared to take it up," he said.

He added that the state "rushed the rules out" in the beginning.

"Everybody was very eager to pay the fees, people were eager to collect the fees," he said.

"And then when the state realized that there was some legal issues around the language, they changed it and then they changed it without considering the consequences for the local taxpayer and they could have addressed it in their legislative session and helped us out and they didn't."

In response to the changes that the CCC has made, the city has proposed a new ordinance to address equity requirements and allow the mayor to set policy regarding host community agreements.  It was approved by the Community Development Board and referred to the subcommittee on ordinances and rules.


Tags: cannabis,   lawsuit,   

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PCTV Turns 40, Anniversary Celebration This Friday

By Breanna SteeleiBekshires Staff

PITTSFIELD, Mass. — Pittsfield Community Television is turning 40 this week, and it's celebrating with its viewers and listeners.

This Friday, Sept. 18, PCTV will celebrate at the Berkshire Hills Country Club. Ryan Peterson, WTEN News10 ABC anchor and Pittsfield High School graduate, will give the keynote address. 

Executive Director Shawn Serre, who has been with the station for over 32 years, said it's their chance to celebrate all they have been able to bring to the community.

"It's a chance to reflect on everything that the organization has done over those years, all the people that have been involved. From board members to volunteers to producers to crew people to staff members, and all the different programs that we've produced," he said. "Everything from public programming to education, sports, graduations, parades, government meetings and forums, and election night coverage, and all kinds of other things that just year upon year of history that we've been able to create and document here for the Pittsfield community over those years." 

Serre took over as executive director about nine years ago. Originally a volunteer fresh out of college.

The original board included former mayor Edward Reilly, Dan Dillon, Diane Morgenstern, Bernard Avalle, and John Fukes of the Berkshire Athenaeum. The operation was all-volunteer until PCTV hired the first executive director in January 1989.

PCTV has operated out of its station on Federico Drive since 1999. But originally they worked out of a basement. 

"The first location that we ever had, we had all of our equipment stored in cardboard boxes in the basement of the Berkshire Athenaeum, because the Berkshire Athenaeum at the time was very gracious and allowed us to have some space while we sort of got our feet on the ground and sort of got things organized," he said. "But we had no location. We had no studio. We just had this equipment that was ordered with the money that we had from the original cable franchise grant."

"So that lasted a couple of years, and then we signed and got a lease over in our first studio location, which was over on Fourth Street in Pittsfield," Serre continued. "That was around the time that I first got involved, just before we moved to Fourth Street. So I was there in the basement of the library, opening those boxes up and seeing what we had for equipment. So we stayed there at Fourth Street for about 10 years, and then this building that we're currently in now, over on Federico Drive, was constructed in 1998. It was built kind of custom-made for the cable company and for us and for one other company." 

Serre said one of their proudest moments was saving the radio station WTBR-FM back in 2018. PCTV made space for them so they could continue operation.

"We carved out some space here in our facility for that, and we've been operating that radio station ever since. So those are some of the big milestones of growth of the organization over the years, and the things that we've done," he said.

They have also invested in advanced technology to keep their programming accessible to all.

"Technologically, there's another whole series of things that we've gone through," he said. "We've started out with a single cable TV channel. We grew to three cable TV channels. We started out as standard definition on videotape, and we grew to digital, and then to high definition, and then everything went to the internet. So we're able to offer video on demand and live streams and video on social media. And then with the radio station, we also have a live stream there and podcasting. So we've seen a lot of technological change and tried to roll with that over the years."

Serre said that PCTV strives to keep people informed while also allowing space for people to create their own media.

"The whole idea behind PEG [Public Education and Government Access]...the whole idea behind that back in the 70s and 80s was that people could be left behind with the technology that's available to the big corporations," he said. "So, if you had a cable system at the time, ordinary people maybe they had camcorders at home, but they didn't have access to a TV studio; they didn't have access to the kind of technology that we had to allow them to create programs and share it with the community. So we filled that gap, and that was one of the main things that we did. And then also to be able to create programming for viewers and for the city, so that the municipal meetings can be shown, and so school committee meetings can be shown, and it really brings people in and involved."

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