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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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BRTA Looks to Another Year of Fare Free

By Breanna SteeleiBerkshires Staff

PITTSFIELD, Mass. — The BRTA is expecting another year of fare free rides.

Berkshire Regional Transit Authority Administrator Kathleen Lambert told the advisory board recently that she expects to receive $1.3 million in state funding to remain fare free. She said RTAs may be given up to $40 million this year statewide, which is $5 million up from last year.

While the state budget is not formally approved yet, the effect will take place on July 1.

The news came at the same time the board approved the BRTA's budget of $13.6 million, which is an increase of 11 percent since last fiscal year.

Some of the increases were in the fixed route area which jumped from $9 million to $12 million. Lambert said this is due to the contractual agreement between the union where they have a five percent raise for all of the drivers and other union members, as well as a seven percent raise for paratransit fleet operators.

Lambert said much of the costs raised were fuel costs because of the ongoing war in Iran. The authority uses about 8,000 gallons of fuel a month and has planned for $5.75 per gallon.

The customer service desk, which currently staffs two employees, will be shut down, she said. The two employees were given notice months in advance and one showed interest in becoming a bus driver and will plan to interview for that. Lambert said two new drivers have started and that the new transit company Keolis, which is taking over for Transdev, will continue to hold recruiting events. The new manager is Mark Moujabber, taking over for Bobby Quintos. 

Lambert told the board she believed there are discrepancies in ridership data. Deputy Administrator Benjamin Hansen, who was in operations before his current role, said the authority has been seeing low ridership because of route cancellations, however, this past month, the numbers did not make sense as demand has stayed the same but ridership seemed exponentially low.

To get the figures, bus drivers must manually push a button on the farebox to record passengers, wheelchairs, and bikes, which might have errors. There are automatic passenger counters (APCs) installed, but they are not certified, so are only used as a rough comparison tool as they are not accurate.

Board member Stuart Lawrence asked if there has been any investigation on if this might be deliberate. Hansen said there is not as he does not know how they could watch for that to happen.

Lambert said she has been working with professor Paula Consolini at Williams College, who will have a group of samplers who will ride the bus and gather a week's worth of data.

In the last meeting, the board spoke about anonymous emails from drivers, and a letter iBerkshires received spoke of unhappy drivers who were considering quitting because of decisions being made without "input from frontline staff," frustration and falling morale, and the removal of the former general manager shortly after Lambert came in.  

Multiple employees had also signed on to a vote of no confidence letter in the BRTA administration spearheaded by Raymond Killeen who is a bus driver and represents Cheshire on the advisory board. Killeen said losing Quintos was hard, stating he was an excellent general manager and not having him there led to hardships on accomplishing many things.

"Once the removal was there, it was difficult to accomplish certain things, because we had lost the general manager. So, the letter was an attempt to get things moving a little bit quicker, so we could provide a better service for the residents of Berkshire County. I don't know if it accomplished that. We were able to do some things, though, but the concern amongst rank and file here is that we're not providing the best service we possibly could, and we're hoping that when the new management team comes in, that can be accomplished," Killeen said.

Killeen said he was unhappy with the progress to a revised driver schedule. The day after the meeting, Lambert and the team had a meeting to discuss and negotiate run schedules, Lambert said it was a very good and productive meeting.

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