Gaylord will now reap financial benefits from marijuana businesses

Paul Welitzkin, The Petoskey News-Review
·2 min read
After approving an ordinance legalizing the recreational use and sale of marijuana, the Gaylord City Council will decide how to spend $311,000 received from the state's 10% adult-use marijuana excise tax for 2022.
After approving an ordinance legalizing the recreational use and sale of marijuana, the Gaylord City Council will decide how to spend $311,000 received from the state's 10% adult-use marijuana excise tax for 2022.

GAYLORD — The ordinance legalizing the recreational use and sale of marijuana is now two years old and the city is beginning to reap the financial benefits.

Michigan communities that allow recreational marijuana sales will share $59.5 million in tax revenue for the 2022 fiscal year, according to the Michigan Department of Treasury. The 224 municipalities and counties that have recreational marijuana dispensaries or microbusinesses will split a piece of the revenue collected from the 10 percent adult-use marijuana excise tax, with each receiving about $52,000 for every licensed retail store and microbusiness.

Gaylord City Manager Kim Awrey said the city will receive $311,000 for the six retail outlets that were in operation as of Sept. 30, 2022. Otsego County also received $311,000 from the cannabis tax.

More:As one year anniversary passes, Gaylord's marijuana economy is thriving

There are three to four marijuana businesses that could come into operation in the city by next Sept. 30, meaning both the city and the county may receive over $500,000 each next year if the payout remains at $52,000 per outlet.

In addition to the jobs the marijuana businesses have created, Gaylord Councilman Alan Witt noted the buildings that have been renovated.

"I would say (the ordinance) is very successful and really it's been a blessing for the city," Witt said. "Look at what it has done for revitalizing decaying buildings. People have come in and spent money renovating buildings that has made our community look better."

Erik Varga and Michelle Willes inside the Green Arrow marijuana outlet on Main Street in Gaylord. The store is the third retail dispensary to open in the city since the council approved an ordinance legalizing the recreational use of the drug in 2021.
Erik Varga and Michelle Willes inside the Green Arrow marijuana outlet on Main Street in Gaylord. The store is the third retail dispensary to open in the city since the council approved an ordinance legalizing the recreational use of the drug in 2021.

Otsego County had dedicated its $311,000 to the operation of the 911 emergency communication system. Now the city council has the pleasant task of deciding how to spend its tax revenue, which comes with no strings attached.

"It goes right into our general fund so it doesn't have to be earmarked for anything specific," Awrey said. "We collect about a five mill property tax assessment for our police services. I would like to see that reduced."

Gaylord will spend about $2 million on police this year and the property tax assessment raises about $850,000. Council has the option of designating all or part of the pot tax revenue toward police operations.

Employees of Dunegrass in front of a mural that is located in the area next to the store on South Otsego Avenue in Gaylord.
Employees of Dunegrass in front of a mural that is located in the area next to the store on South Otsego Avenue in Gaylord.

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Awrey said the proposed elk viewing park could be another project that the revenue funds.

"We have the property on the corner of Elkview and Commerce that we want to develop into a year round elk-viewing platform," noted Awrey.

Awrey said the city has also been applying for grants to make the proposed park accessible for those with disabilities, build restrooms, parking and paths that connect to nearby Aspen Park.

"We could put the money into parks and maybe renovate some facilities," said Witt. "Really we can put toward anything we need to take care of as a city."

— Contact Paul Welitzkin at pwelitzkin@gaylordheraldtimes.com.

This article originally appeared on The Petoskey News-Review: Gaylord will now reap financial benefits from marijuana businesses