Operators of a recreational cannabis dispensary, that would potentially add up to $500,000 a year to the city’s revenue stream, hope to operate on Waukegan Road near the Fountain Square Shopping Center in Waukegan late next year or by early 2023.
Seeking to operate a 4,600-square-foot dispensary known as Ivy Hall, selling an array of recreational cannabis products, World of Weed, Inc. — with a license to open a facility from the state of Illinois — is taking its initial steps to get a conditional use permit to open in Waukegan.
The Waukegan Planning & Zoning Commission unanimously recommended Thursday at City Hall the City Council approve World of Weed’s application for a conditional use permit that would make it the first cannabis dispensary in the city.
Though some issues remain, like the operating hours and the number of armed security guards which must be present during business hours, the commissioners are in general agreement on other elements of the proposed business.
Andrew Scott, an attorney representing World of Weed who told the commission about the dispensary, said no odors will emanate from the building, the nature of the business will not be obvious, consumption will not be allowed on the premises and customers will not be allowed to loiter.
“It’s a toned-down name.” he said. “There are not going to be any cannabis leaves. Windows will be opaque. People are not going to be able to look in and ogle at the different products that will be available.”
Scott said those products will include cannabis flour, topicals, oils and edibles. With between 25 and 30 people working there, they will be able to quickly service knowledgeable customers, and spend time with those who need more information.
“You heard about the gummy bears. Sometimes it’s baked goods. It really runs the range,” Scott said. “It’s not just a retail store,” he added, referring to employee knowledge. “There is a strong educational component, so people who are new to it can use it and consume it safely.”
Noelle Kischer-Lepper, the city’s director of planning and economic development, said when the city established its zoning ordinance governing recreational cannabis, it provided the state-allowed maximum sales tax of 3% to the city.
Between the city’s share of the state-imposed sales tax and its own 3%, Scott said Waukegan should realize revenue between $400,000 and $500,000 based on projected annual sales of $8 million to $10 million.
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Kischer-Lepper said if approved by the council, Ivy Hall will be Waukegan’s first recreational cannabis business. Other Lake County dispensaries are located in Mundelein, Highwood, Highland Park, Buffalo Grove and Wauconda.
Waukegan Mayor Ann Taylor said in a statement Friday she favors the new business because it is both legal and highly regulated under Illinois law. The additional revenue will help at a time when every expense must be closely watched.
“I support the recommendation from the planning commission and look forward to further discussions,” Taylor said in the statement. “I’ve made it a priority for Waukegan to grow our tax base, and this is another step on that journey.”
Before a final ordinance is considered by the City Council, Kischer-Lepper said World of Weed representatives will discuss the hours of operation and the number of armed security guards necessary to staff the dispensary with Waukegan Police Chief Wayne Walles.
Scott said Ivy Hall wants to staff the dispensary with one armed security board, while Kischer-Lepper said her department is recommending two based on police suggestions. Scott wants the store open from 9 a.m. to 10 p.m. Monday through Thursday, 8 a.m. to 10 p.m. Friday and Saturday, and from 9 a.m. to 7 p.m. Sundays. The police want between 6 a.m. and 9 p.m. daily.
“Both of these recommendations, on the hours and the staff, came directly from our police chief,” Kischer-Lepper said. “We need to respect the chief’s request,” she added, insisting the commission not alter the conditions in its recommendation.
Plan Commission Chair Michael Rodriguez said while there are some people who may not want to see a dispensary in Waukegan, it is a legal business and it is not in the commission’s purview to recommend against an allowed operation working within guidelines of the city code.
“I would not be a customer of this business,” Rodriquez said. “I would not recommend any member of my family do business with a cannabis company. However, that is not what we are here for. I am going to base my vote strictly on the planning and zoning issues we are charged with dealing with.”
The next step for World of Weed is a hearing before the council’s Community Development Committee Jan. 3 for its recommendation, and a final vote by the council Jan. 18.