After looking at two options, Oswego trustees have approved the first marijuana dispensary in town.
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Oswego trustees recently voted 4-2 to give Cloud 9 Dispensary a special use permit to run a marijuana dispensary in a former restaurant at 2420 Route 30 near the Townes Crossing Shopping Center.
Voting in favor were Trustees Tom Guist, James Marter, Terry Olson and Jennifer Jones Sinnott. Voting the other way were Trustees Kit Kuhrt and Brian Thomas.
Catalyst Cannabis had also proposed opening a marijuana dispensary in Oswego, with its proposed location in a former daycare center at 260 N. Merchants Drive.
Village code and state requirements prohibit marijuana dispensaries from locating within 1,500 feet of one another. The two proposed locations are approximately 1,170 feet apart, Oswego Development Services Director Rod Zenner said in his report to trustees.
Cloud 9 applied for a special use permit Oct. 7 and Catalyst Cannabis applied Oct. 31. The Oswego Planning and Zoning Commission reviewed the proposals Nov. 10 and Dec. 1 respectively and recommended approval for both.
The two groups pitched their plans to break into the Oswego market at a meeting of the Village Board Dec. 13.
The idea of “speed to market” is crucial and so by getting their application in they thought it would “stake their claim” for the Oswego location, Cloud 9 representative Roger Koeppen said.
However, another request for a special use permit came along, he said.
“Both of us are now here vying for your interest,” Koeppen said.
Cloud 9 has started construction drawings with anticipation it would get approved by the village, knowing it can be a lengthy process to get state approval, Koeppen told trustees.
Catalyst Cannabis representative and Chicago zoning attorney Nick Standiford acknowledged it’s been difficult to find another user for the former daycare center site proposed for its marijuana dispensary.
“This property has been hard to lease but fortunately the stars aligned and a tenant has been found,” Standiford said, adding it would require a lot of work to convert it into a dispensary.
Catalyst currently owns and operates nine retail marijuana dispensaries in the Southern California region, according to the company’s application to the village.
“I do agree it’s important to be first-to-market. We strive to do that anywhere,” former real estate developer and Catalyst Cannabis CEO Elliott Lewis told trustees. “I don’t think there is a city where we haven’t been worse than second to open out of a big pool of applicants. Usually we are the first to open.”
Village staff recommended Cloud 9 at its choice to the Village Board to operate a dispensary.
“If it were not for the fact that two dispensaries are … within 1,500 feet, staff would not have any concern with either of the properties operating a dispensing facility,” Zenner said in his report.
Zenner said Cloud 9 applied first and went before the Planning and Zoning Commission first. Also, there is less extensive work to do at the site to turn it into a dispensary, and they intend to be open months before Catalyst Cannabis.
According to the village’s comparison of the two proposals, Cloud 9 plans to open in mid-March, while Catalyst Cannabis had an anticipated opening of late June or early July.
“Both locations would be great for their proposed use,” Zenner told trustees.
Cloud 9 is not currently operating any marijuana dispensing facilities but they are in the process of opening sites in Champaign and Edwardsville and are in the application process in East Peoria, Bloomington and North Shore, officials said.
Catalyst operates multiple marijuana dispensing facilities in California. Currently they are not operating any facilities in Illinois but they have recently received approval to open a facility in Franklin Park, according to officials.
“The main difference we looked at was the ability to get this up and running quickly,” Zenner told trustees concerning the two applicants.
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The Cloud 9 location – a former restaurant – has had several businesses that have not been successful there but the need for improvements to the site are limited to mainly internal upgrades, he said.
The former daycare center site that Catalyst proposed using does need a lot of interior and exterior site work in order to open as a dispensary, Zenner said.
“They are incredibly similar and while I tend to slightly like the Catalyst location better I am going to defer to staff’s recommendation and go with Cloud 9,” Guist said prior to the final vote.
“Both companies are strong. I like them both,” Olson said. “Both business plans explained in detail what they would do but I will go with staff’s recommendation.”
Linda Girardi is a freelance reporter for The Beacon-News.