Hancock spent $200K from share in Medicinal Marijuana factory on revitalization grants
William Weller slapped on a fresh layer of paint, purchased a new storefront sign and energized his marketing efforts of his florist and gift shop — one of the many businesses the town of Hancock helped with money made from medical marijuana.
"We were able to do stuff like that where (Hancock) gave money to make it look better than what it was," Weller said. "If these buildings were in better shape, we'd get more people."
The town of Hancock fueled its downtown revitalization effort this past year with money made from its ownership stake in a locally based marijuana-growing operation, stoking optimism over profits to come under a state law legalizing recreational marijuana effective July 1.
Hancock brokered a deal with Harvest Health and Recreation, a medicinal cannabis operation, in 2016 to sponsor the company's medical marijuana growers license in exchange for a 5% stake in the Maryland arm of the company. The town has since funneled $213,933.80 made from that ownership stake into a revitalization program and business development grant, according to Town Manager Michael Faith.
“There are several places downtown that got grant money, and they're using that money to fix up their storefronts and fix up their properties, so we've seen a pretty big impact,” Faith said.
The revitalization program gave grants up to $10,000 to applicants looking to open or expand a business with a 10% match for exterior or structural improvements, according to the programs' criteria. Similarly, the business development grant awarded up to $10,000 with a 10% match to be used for building improvements and other costs associated with opening or expanding a business.
The town of Hancock only budgeted these programs for 2022, Fatih said. He noted the money Hancock made from its 5% stake in Harvest DCP of Maryland has since sat in an account separate from the town budget while town officials decide how to best use the funds.
How has that green money been spent?
Weller, the owner of Willies Primitive Attic and Flower Shop, said he was granted around $10,000 through the program last year. In addition to visual improvements, he said the money went towards increasing inventory.
Motioning to the empty storefronts on Main Street, Weller said Hancock's limited foot traffic problem comes down to aesthetics. He said if Hancock looked a little better, “I think you would actually get more people.
“Whatever can bring people to the town, I'm good for,” Weller said. “You need to bring people on Main Street, not just on the rails and trails … We need to keep them here for more than just an hour or two.”
Rachel Truitt, who co-owns three businesses in Hancock, was awarded the full $10,000 for her candle store, Country Scents. She used the grant to buy wax to expand operations.
Truitt said she applied for grants for her other two businesses but was denied funding due to later amendments that limited the grants to a single business or property owner. She said if Hancock were to pick the program back up, she wants the grants to be as accessible as they used to be.
“If they make these grants accessible to people on a realistic term like it started to be, all these storefronts could be beautiful again," Truitt said. "They could spend $10,000 out front and that's what's gonna draw tourists, that’s what’s going to draw people to even want to be here.”
Faith said under the grants' original language, Truitt would have been eligible for two grants - not three - and that she applied only after the changes were made.
It’s not clear if the programs will reopen, but Faith said the profit turned from the Harvest deal will continue to go toward downtown revitalization.
“The focus has always been to use that money to put it back into the town, to help the town," Faith said. "So I can see capital improvements, better streetlights, maybe security cameras or another grant program.”
Will Hancock rake in more under the new law?
The initial agreement between Hancock and Harvest gave the town an ownership stake in its Maryland branch, Harvest DCP of Maryland. The company currently grows and processes medicinal cannabis in two town-owned buildings in Hancock.
Hancock maintained its minority stake when Trulieve, a major cannabis company, purchased Harvest in 2021 in a deal valued at $2.1 billion.
The next year, Maryland voters overwhelmingly approved the recreational legalization of marijuana cannabis on a ballot initiative in November. With new laws set to go into effect next month, the adult-use authorization of minor possession and permitted retail paves the way for a statewide boom in sales.
Nicole Yelland, the executive director of communications for Trulieve, said, “We’re going to be in Maryland in full force on July 1.”
According to a report from the Maryland Cannabis Administration, Trulieve is "eligible to serve adult consumers beginning on July 1" at three locations elsewhere in the state. Yelland said Trulieve doesn’t currently plan on opening a dispensary in Hancock.
"Adult use indicates we would sell more, and I hope that's true," Yelland said. "And for Hancock, obviously that has a positive implication."
According to town officials, it's not clear if Hancock will see increased revenues through their 5% ownership if Trulieve expands retail and manufacturing operations elsewhere in Maryland, but they're optimistic as contract negotiations are underway.
"If it's legal for recreational use, and they start to get into that market, there could be potentially more revenue for the town due to our ownership agreement with the company," Faith said, "But that's hard to say and we're not going to budget for more revenue from Harvest."
