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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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Youth For The Future: Adwita Arunkumar

By Breanna SteeleiBerkshires Staff

PITTSFIELD, Mass. — Williams Elementary School fourth-grader Adwita Arunkumar has been selected as our April Youth for the Future for her mentoring of a younger child.

Youth for the Future is a 12-month series that honors young individuals that have made an impact on their community. This year's sponsor is Patriot Car Wash. Nominate a youth here

Adwita has cortical visual impairment; she has been working with her teacher, Lynn Shortis, and her, paraprofessional Nadine Henner.

"My journey with CVI means that I learned in a different way. I work hard every day with Miss Henner and Miss Lynn, to show how smart I am," she said.

"Adwita is a remarkable student. She's a remarkable child. She has, as she shared, cortical visual impairment, which is a brain-based visual processing disorder, which means the information coming in through the eyes is interfered with somewhere along the pathways, and we never quite know what's being interpreted and how and how it's being seen," said Shortis.

"So she has a lot of accommodations and specialized instruction to help her learn."

Recently Adwita has chosen to mentor 4-year-old Cayden Ziemba, who is also visually impaired.

"I decided to be a mentor to Cayden so that she can learn some new things. I teach her how to walk with the cane, with the diagonal and tap technique, I am teaching her Braille," she said. "I enjoy spending time with Cayden, playing games and being a good role model."

Shortis said the mentoring opportunity came up when Cayden was entering preschool at Williams, and they introduced her to Adwita. 

"Adwita works really, really hard academically. She's very smart, but there are a lot of challenges in that, because of the way that it's so visual and she's a natural. She's just, it's automatic," Shortis said. "It's kind of like a switch is turned on and she becomes this extremely confident and proud person in this teacher role."

Adwita also has been helping Cayden on how to use her cane on the bus and became a mentor in a unexpected ways.

"Immediately at the start of this year, she would meet Cayden at the bus. She has taught Cayden how to use her cane to go down the bus stairs. Again, Adwita learned that skill, so it wasn't something I had to say to her, this is what you need to have Cayden do. She just automatically picked that up and transferred that information," said Shortis. "Cayden is now going down the bus step steps independently with her cane. And then she really works hard with Adwita in traveling through the hallways, Adwita leads her to her class every morning, helps her put her things away and get ready for her morning."

Adwita said she hopes Cayden can feel excited about school and that other students can feel good about themselves as well.

"I want them to know that Braille is cool to learn. You can feel the bumpiness with your fingers. I want people to know how you can still learn if your brain works differently sometimes. I need to have a lot of patience working with a 3-year-old. I need to be creative and energized," she said.

She hopes to one day take her mentoring skills to the head of the class as a teacher.

"I want to become a teacher and teach other students when I grow up. I might want to teach math, because I am great at it," she said. "I also want to teach others about CVI. CVI doesn't stop me from being able to do anything I want to. I want students to not feel stressed out and know that they can do anything they want by working hard and persevering."

Her one-to-one paraprofessional said she likes seeing the bond that has grown between the two girls, and can picture Adwita being a teacher one day.

"I do see her in the future being a teacher because of her patience, understanding and just natural-born instinctive skills on how to work with young children," Henner said.

Shortis also said their bond is quite special and their relationship has helped to bring out the confidence in each other.

"The beauty of it, there's just something about it their bond is, I don't even really have a word to describe the bond that the two of them have. I think they share something in common, that they're both visually impaired, and regardless of the fact that their visual impairment differs and the you know the cause of it differs," she said.

"They can relate. And they both have the cane. They're both learning some Braille. But there's something else that's there that just the two of them connected immediately, and you see it. You just you see it in their overall relationship."

 
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