COLUMBUS, Ohio — The last of Ohio’s 24, highly sought-after medical marijuana cultivation licenses were awarded Thursday, ending months of anticipation but leaving many applicants and industry observers with more questions about the process.
The Ohio Department of Commerce winnowed 185 applicants down to 24 winners — 12 level I licenses for up to 25,000 square feet of grow space and 12 level II licenses for up to 3,000 square feet. The department announced the 12 large growers on Thursday.
Application records released Thursday reveal some information about the companies’ owners, advisers and facility plans.
Here are five things you need to know about the large growers.
Seven of the 12 large grow license winners and six of the 12 small grow winners are located in Northeast Ohio. No sites in Central Ohio were chosen for either small or large grows.
Most applicants had out-of-state help or included out-of-state members or advisers.
Johnstown, just east of Columbus, had spent the last two years readying itself to be a hub for Ohio’s medical marijuana business. None of the five companies that applied for sites there was awarded a license.
Village Manager Jim Lenner said the outcome was disappointing because without cultivation, it’s highly unlikely the community will attract a marijuana product manufacturer or testing lab.
“Not only are we out, Central Ohio’s out,” Lenner said.
2. Some interesting names got licenses.
Cleveland businessman Andy Rayburn’s group Buckeye Relief scored the highest for its proposed Eastlake site. Developers Dominic Visconsi, Jr. and Anthoni Visconsi II and Cleveland philanthropist and Lincoln Electric board member Russ Lincoln and his son Sam are involved in the company, according to tax information cover sheets included in its application.
Ariane Kirkpatrick, who owns construction services company AKA Team, is the president of Harvest Grows, which proposed sites in Cleveland and Lawrence County.
Riviera Creek Holdings, which proposed a site in Youngstown, is backed by Chris Stock and Brian Kessler. Both were involved with Ohio’s 2015 failed constitutional amendment to legalize marijuana. Stock, a Cincinnati attorney, was one of the authors of the amendment.
Cresco Labs in Yellow Springs counts several GOP consultants among its owners. Gov. John Kasich’s former spokesman Chris Schrimpf and his brother Michael, also a Republican consultant, are partial owners. Troy Judy and Chad Hawley, lobbyists who were aides to former House Speaker William G. Batchelder, also have stakes in the company.
Standard Wellness, with a site in Gibsonburg, listed several notable names on its large roster of owners, advisers and consultants. Among them were Patrick McManamon, founder of Westlake-based Cannasure insurance company; Brad Maloof, president of Amware Recycling, and Debbie Connelly, vice president for human resources at Westlake software company Hyland.
Brandon Lynaugh, a Columbus lobbyist who worked on the campaign against ResponsibleOhio’s 2015 marijuana legalization measure and for Marijuana Policy Project’s 2016 medical marijuana measure, was listed as the company’s director of government relations.
One of the 20 advisers listed is Rex Damschroder, a former Republican state representative who left the legislature before it passed the medical marijuana law.
Pure Ohio Wellness’s board of directors includes Larry Pegram Jr., a former motorcycle racer, and Columbus developer Bill Schottenstein. Both are involved with an effort to develop Columbus’ old Cooper Stadium. Pure Ohio Wellness chose a site in Springfield.
Cincinnati businessman Walter “Chip” Homan and his son Walter Jr. are among the owners of the Ohio offshoot of multistate medical marijuana company Columbia Care. Columbia Care plans to build a facility in Mt. Orab.
3. Several big names didn’t get licenses.
Several well-known companies and investors didn’t win licenses. Among them was GTI Ohio, an offshoot of an Illinois medical marijuana company backed by Cleveland investor Bobby George.
A group led by Andy Joseph, who runs cannabis oil extraction company Apeks Supercritical out of Johnstown, also did not win a license.
Canadian medical marijuana company Aphria, which paired with Columbus’ Schottenstein family, was not chosen for a license.
And CannAscend, backed by ResponsibleOhio co-founders Ian James and Jimmy Gould, lost as well.
Brian Wright, executive director of the Ohio Cannabis Association, said the denial of top applicants raises concerns about additional delays to patients.
4. Little is known about how applications were scored.
Applications were split in two parts. The first section contained the information about the site and the company’s members. The second section was not supposed to contain any identifiable information.
Applicants who checked all the boxes in the first section were graded on the second section, blind, based on their business, operations, quality assurance, security and financial plans. A maximum of 200 points was awarded and scores were weighted to value operations and finances more.
State employees reviewed the applications with the assistance of three consultants hired through a competitive bid process, a department spokeswoman said.
The department has not provided information about the reviewers or further explanation for the scores given to applicants. The department also has not released the score totals for losing applicants.
5. Legal challenges are likely.
Every state that has doled out medical marijuana cultivation licenses through a competitive process has faced legal challenges. Lawsuits can tie up license awards for months, which could delay Ohio’s program past its statutory September 2018 start date.
The Department of Commerce is directing losing applicants to file appeals through the state’s administrative hearing process. They have 30 days to file. The department has set aside more than $300,000 for the appeals process.
James and Gould of CannAscend said Thursday they’re considering a lawsuit. Gould said the application process was full of flaws.
The businesses awarded large cultivator licenses are:
- Buckeye Relief LLC in Eastlake (179.28 points)
- Grow Ohio Pharmaceuticals LLC in Newton Township (173.44 points)
- OPC Cultivation LLC in Huron (173.28 points)
- Riviera Creek Holdings LLC in Youngstown (172.72 points)
- Pure Ohio Wellness LLC in Springfield (167.64 points)
- Columbia Care OH LLC in Mt. Orab (167.08 points)
- Terradiol Ohio LLC in Canton (165.48 points)
- Standard Wellness Company LLC in Gibsonburg (161.28 points)
- AT-CPC of Ohio LLC in Akron (161.28 points)
- Cresco Labs Ohio LLC in Yellow Springs (159.80 points)
- Parma Wellness Center LLC in Parma (153.08 points)
- Harvest Grows LLC in Hamilton Township or Cleveland (142.04 points).
credit:cleveland.com
