image description
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
Print Story | Email Story

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,   

If you would like to contribute information on this article, contact us at info@iberkshires.com.

Companion Corner: Cali and Kyzer at The Berkshire Humane Society

By Breanna SteeleiBerkshires Staff

PITTSFIELD, Mass. — There's a bonded dog pair awaiting a new family at the Berkshire Humane Society.

Kyzer and Cali are both poodles. Kyzer is the male and is 7 years old, a quite a bit bigger than his sister Cali, who is a miniature of Kyzer and 8 years old.

Canine adoption counselor Rhonda Cyr introduced us to the two.

"They came from a household that couldn't hold on to them, and it sounds like they may have been abandoned by their previous owner with somebody else, and so they came to us looking for a new home," she said.

The two love to be around you and snuggle. But both are very happy dogs.

"Kyzer is 7 years old, and his personality is that he kind of wants to be in everything. He's very loving, very snuggly, as you can tell. And Callie here, she's 8 years old, and she is kind of like the life of the party," said Cyr. "She wants to tell you everything about her day, and she's a little bit of a little ham."

The two are considered seniors and really like soft treats as Cali just had a few teeth removed and Kyzer has a tooth procedure coming up.

"Currently, they really like soft treats, because they are both on the senior side of things. So they have had some dental work, so they are really in need of something softer. They are not big chewers at this age, really, their main focus right now is just really socializing and cuddling," Cyr said.

The two would love a quiet home with someone who wants to snuggle. They shouldn't go to a home with bigger dogs but if you have a dog, you can bring them in for a visitation with the poodles to see if they will get along. Cats will be fine and the preference is for older and more responsible children so that the pups don't get hurt, as they are senior citizens.

"The perfect home for them would be a quiet home that's not too active. Like I said, they're very social, so they could handle some visitors," she said. "They're very friendly, but I don't think that they would really enjoy any other dogs in the home."

Poodles need to be regularly groomed, and the prospective adopter will have to keep an eye on their health. Kyzer has a heart murmur that needs to be monitored. This doesn't mean he is in bad health, as he could live a perfectly normal life, but he will need to be checked by a veterinary specialist routinely.

"Ideally, he would go to a home that could provide further health care with a specialist in cardiac care. And you know, he could very well live out the rest of his life comfortably and happy," Cyr said. "We just don't have all that information at the moment, but I think that you know the way he's going right now. He's got a good spirit, and he seems to be pretty happy."

The shelter is hoping the to get them a home for the holidays.

"We would love to get them a home in time for the holidays. They've been here since the eighth of November, and they're really, really looking as much as the staff loves them here, we're really looking to get them into a home and somewhere nice and cozy so they can spend the rest of their life together," she said.

View Full Story

More Pittsfield Stories