As Detroit's second recreational pot shop round nears, some still not open
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Nearly a quarter of Detroit recreational cannabis shops awarded coveted licenses by the city late last year are not currently open, per a recent government survey.
Why it matters: Detroit's process of starting up its recreational pot program has been long-delayed, with some entrepreneurs waiting costly years to take part in the high-profile industry while nearby cities capitalized more quickly.
- The first of three rounds of limited licenses was awarded in December. The second round of applications opens Aug. 1 for up to 30 more retailers.
- But that eight out of the 36 awarded businesses are still not open half a year later is another wrinkle in the rollout.
What they're saying: City Council President Pro Tem James Tate, who led the city's cannabis ordinance efforts, says he hoped to give awardees time to get a handle on the complex industry and open up before the city started taking a second round of applications. "I believe at this point we've been fair and done just that," he tells Axios.
- Some haven't opened because of financial struggles, while others have dealt with various "internal" business challenges, Tate says.
- Owners who are new to the business — instead of an existing medical pot business opening recreational sales — may be having a harder time, Kim James, the city's marijuana office director, tells Axios.
Context: Much of the program's overall delay has come from challenges city officials faced while trying to make the industry inclusive of long-term residents, they say.
- "Ultimately I think it's working," Tate says. Detroit has a higher percentage of Black ownership so far for adult-use retail than "anywhere in the country we've been able to identify."
By the numbers: Of the 36 businesses given recreational approval, James says 19 are majority Detroit resident-owned.
- Sixteen are majority Black-owned and 20 have at least one Black owner.
- Nine are majority woman-owned and 18 have at least one owner certified as "legacy," meaning they're a long-term, low-income resident and may have a past cannabis conviction.
Of note: The city originally awarded 33 businesses, then added two more who appealed and another one due to a scoring error.
Go deeper: Explore the city's new map of adult-use and medical pot businesses that shows which are open and which aren't.