Last month, Northampton became what is likely the first community in the state to waive the impact fee that cannabis businesses are required to pay their host cities or towns.
Two other area communities with burgeoning recreational cannabis industries say they are not currently considering a similar measure, but that cannabis retailers have made significant impacts on local departments and resources.
Easthampton has received around $1 to $1.2 million in revenue from community impact fees, according to Mayor Nicole LaChapelle, with almost $1 million from that figure drawn from Insa, the first recreational cannabis shop to open in the city. Northampton, by comparison, has collected around $3.1 million.
Revenue aside, “the biggest similarity between Easthampton and Northampton is that we both have ‘hampton’ in the city’s name,” LaChapelle said, “and our budgets, our revenue before cannabis were starkly different, and are still starkly different.”
And currently, Easthampton does not have any plans to strike the community impact fee. The community impact fee requires cannabis businesses to provide 3% of their gross annual revenue to their host community.
“We don’t want to put the financial burdens on these businesses (so) that they can’t open,” LaChapelle said. “We don’t want to be an impediment to business in Easthampton, but it needs to be fair.”
Aside from Insa two other dispensaries, Liberty and Canna Provisions, also operate in Easthampton, with two others in the works. One license remains available to other dispensaries interested in a location in the city.
The city does not expect Liberty and Canna Provisions to match the revenue of Insa, LaChapelle said, though officials are not sure what to expect.
Additionally, the cannabis industry’s impact on the city has been different than anticipated, according to LaChapelle.
Public safety departments “probably have the longest track record of impact because of all the preparation work we did three years before anything happened,” LaChapelle said, “but going forward the impact is education, the impact is affordability, the impact is around our roads and streets.”
The city has “had conversations with three or four other companies involved with the cannabis industry,” LaChapelle said, but none have shown a strong intention to apply.
The community impact fee requires cannabis businesses to provide 3% of their gross annual revenue to their host community, and is intended to mitigate the business’ impacts on their host cities or towns.
In Amherst, Town Manager Bockelman said the money from community impact fees has been collected but not spent. The town is considering using the money for education, community safety and road and sidewalk repairs.
“The fees have not been used to date as we are evaluating the impacts on the community,” Bockelman said.
So far, Amherst has collected $329,288 in community impact fees from dispensaries. Those that have opened or are in the process of opening include Rise Amherst, 169 Meadow St., Red Cardinal, 328 College St., Herbology, 422 Amity St., MassAlternative Care, 55 University Drive, and MassMedicum, 85 University Drive.
Bockelman added town officials could look into eventually eliminating the impact fees as part of the evaluation of dispensaries.
Jacquelyn Voghel can be reached at jvoghel@gazettenet.com. Scott Merzbach can be reached at smerzbach@gazettenet.com.
