RICHMOND HEIGHTS, Ohio — Two weeks after dropping its moratorium on medical marijuana business taking place in their city, Richmond Heights officials are experiencing the effect they desired.
Council had hoped that those in the competitive business, made possible last June when the state legislature approved the use of medical marijuana, would take a look at Richmond Heights as a place to grow, process and dispense marijuana.
City leaders believed that much-needed revenue could be derived from such activity and repealed a moratorium. Several local communities last year placed such a block on the medical marijuana business, but have not taken action to repeal those pieces of legislation.
On Tuesday evening, council’s Planning & Zoning Committee heard from Ron Hudson, the owner of Mr. McGooz’ Canna Products. Hudson, a Marine veteran and possessor of a doctorate in biology, told council of his negotiations to purchase the former Villa di Borally party center, 27227 Chardon Road, so that it can be converted into a multi-purpose medical marijuana facility.
Hudson spoke of a plan that would encompass all three phases of the medical marijuana business — cultivation, processing and dispensing — under one roof at the three-tiered building, located just east of the closed Casa di Borally building. The facility, he said, would also include offices for two Cleveland Clinic doctors who are already investing in what he said would be a $2.5-million facility.
In addition, Hudson would utilize a building on the Cuyahoga County Airport grounds to serve as a laboratory.
“For Richmond Heights,” Hudson said after the meeting, “it gives them the opportunity to be the first city in Ohio to have such a facility where (cultivation, processing and dispensing) are under one roof. It would become a flagship operation for the whole country.
“There would be job opportunities, and it could lead to two, three or four more dispensaries opening in the city. It’s a great site right off the freeway. People from around Cuyahoga County would come to it.”
Hudson, of Mayfield Heights, said Mr. McGooz operates facilities in Michigan, Illinois and Ohio. The company produces chocolates, syrup, breath spray, popcorn and more products that contain cannabis. A juice the company produces, according to its website, gives relief within 20 minutes to soldiers suffering from post traumatic stress disorder.
In Ohio, 24 ailments have been recognized as those for which doctors can make a recommendation for medical marijuana use. Hallucinogens will be removed from the marijuana, which can only be taken in vapor or in edible form, or as an oil.
While all people would be able to use the services of the business Hudson is planning, as a disabled veteran, he said, “Mr. McGooz’ mission is to get cannabis products to every veteran who needs them.”
Hudson said veterans and non-veterans are tired of taking pills and medications that have been around, in some cases, for 100 years, to treat their ailments.
Hudson has been in the hydroponics business for 40 years and has been selling edible marijuana products the past eight years. He frequently serves in Ohio and other states as a consultant on the subject of medical marijuana, which has been legalized in 25 states.
“It’s projected that (medical marijuana) will be a $10 million-$15 million business by year two (in Ohio),” he said. “It’s expected Ohio will have 100,000 people using it.”
Councilman Mark Alexander asked Hudson if the business would be operated safely. Marijuana is still illegal in the eyes of the federal government, meaning guns cannot be used for security purposes. In other states, this has led to unsafe situations as sites have been the targets of robberies.
“Ours will be all under one roof,” Hudson said, “so we’ll never have to transport marijuana. We’ll have a security team there, too.”
In addition, Ohio is planning for patients to use plastic cards instead of cash to make purchases.
“Ohio is doing it right,” Hudson said of the laws it is establishing for the medical marijuana business.
Hudson credited Ohio State Senator Kenny Yuko, of Richmond Heights, as the law’s main supporter in the state. It was Yuko who put Hudson in connection with Richmond Heights officials the day after council removed its moratorium.
Ohio’s still evolving regulations state that there will be 24 growing sites in the state, 40 processing sites, and 60 dispensing sites. Hudson does not believe 60 dispensing sites will be enough to accommodate the demand.
Those seeking to cultivate, process or dispense must obtain and pay for state permits. Hudson, expecting to build a small cultivation site inside the former Borally’s building of less than 5,000 square feet, said investors have put up the approximately $220,000 needed for the permits.
He added that those investors have also committed to the full $2.5-million investment needed to start the business.
“This is a big opportunity to bring in an additional source of revenue without disrupting the rest of the city,” Councilman Donald O’Toole said. “It will almost be an invisible operation.”
“We have an opportunity to reshape the city by bringing in new revenue for the next 25-30 years,” Councilman Jeremy Kumin said.
Kumin said additional income tax can be gained — Hudson said 50-60 jobs will eventually be created — as well as property taxes and additional revenue from the those who would spend money in Richmond Heights when coming to the facility.
Kumin added, “This (Hudson) is not the only gentleman we’re talking with (about opening a facility). There are some other interested parties, too.”
On Jan. 31, the city of Eastlake, also seeking to welcome the medical marijuana business within its borders, held a town hall meeting in which officials spoke of creating a large 25,000-square-foot growing area and a dispensary.
Richmond Heights Mayor David Roche and some council members are planning to visit Hudson’s facility in East Lansing, Mich. in advance of a public hearing. Richmond Heights will hold that public hearing to gather residents’ views on the subject at 7 p.m. Feb. 27 in City Council chambers at city hall, 26789 Highland Road.
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