Second marijuana business OK'd in Sheffield
SHEFFIELD — Officials approved a second marijuana business for town when they recently inked a host community contract with Ten Ten Craft Cannabis.
Ten Ten is owned by New York marijuana entrepreneur Scot Trifilo. He is the founder of the medical marijuana firm Fiorello Pharmaceuticals and Terrace Homebuilders, both of New York. His agreement with Sheffield is for a cultivation, manufacturing and retail establishment on North Main Street.
Obtaining a host agreement is a necessary step of Massachusetts' cannabis-business licensing process.
Meanwhile, the Select Board amended its pact with Berkshire Welco, the first cannabis business to receive a Sheffield host community agreement, to add a second in-town site to the business.
Trifilo said he is forming final plans for the business.
Berkshire Welco — it is doing business as The Pass — added 49 Lime Kiln Road to the Sheffield host agreement struck in March. The first agreement covered a planned facility at 1375 N. Main St. With the amendment, both locations have the town's blessing.
Both properties can feature cannabis cultivation, production and manufacturing, but only the North Main Street location will conduct retail sales, according to the agreement.
Berkshire Welco owner Chris Weld said he could not comment on the Lime Kiln Road property because he is negotiating with the owners.
The host agreements for Berkshire Welco and Ten Ten are near identical, but there are a few differences. Both require the business to pay an impact fee of 3 percent of marijuana gross retail sales and 1.5 percent of gross wholesale sales to the town. The companies also agree to host three educational and/or charitable events for the benefit of the town three times per year and give hiring preference to qualified applicants living in Sheffield.
The agreements stipulate that if, in the future, the companies have to pay a higher impact fee to a different host community, Sheffield's impact fee will match the greatest fee. That is to say, if Ten Ten or Berkshire Welco signs a host community agreement with another town and agrees to a 5 percent impact fee there, Sheffield's fee would increase to 5 percent as well.
Where the agreements differ is in that Ten Ten's contract expires in five years. At that time, the company and the town need to negotiate another deal or the current pact stays in place.
Sheffield officials crafted specific language for Berkshire Welco that would save it from having its product subject to more than one local impact fee. Berkshire Welco has an item in its contract that stipulates that the company will not be charged a fee on cannabis cultivated or manufactured at one of the Sheffield buildings that is then transferred to an establishment the company owns outside town. When the marijuana is sold, the impact fee will be collected.
Kristin Palpini can be reached at email@example.com, @kristinpalpini on Twitter, 413-629-4621.
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