Damon Schmidt, who had planned on establishing a retail cannabis business in Phillipston, told the town's Selectboard that he plans on transferring his license and selling his property at 420 State Road to Heppen, a company that currently operates a retail marijuana store in Provincetown.
Damon Schmidt, who had planned on establishing a retail cannabis business in Phillipston, told the town's Selectboard that he plans on transferring his license and selling his property at 420 State Road to Heppen, a company that currently operates a retail marijuana store in Provincetown. Credit: Screen shot/Greg Vine

PHILLIPSTON — After more than two years of effort, including three community outreach meetings and numerous meetings with Phillilpston’s Selectboard and Planning Board, local cannabis entrepreneur Damon Schmidt appears to be throwing in the towel regarding his plans to establish a retail marijuana shop in town. At the Selectboard meeting on Wednesday, March 9, Schmidt introduced the board to Andrew Koudijs, the owner of a cannabis company interested in setting up shop in Phillipston.

“You’re not going to apply for the host community agreement?” board Chair Bernie Malouin asked Schmidt.

“Well,” said Schmidt, “I’ve already applied for a host community agreement under Tempest, so if you want, we can renegotiate a new one, but…”

“Damon, Damon,” Malouin interrupted, “We had this discussion several meetings ago. The host community agreement that you had with Phillipston expired some time ago, and the town attorney recommended that we not extend that one — that you would have to start all over again.

“So, the question is, are you starting all over again, or is only Andrew starting over?”

“Andrew is starting over again,” Schmidt replied. “And I’m not trying to get into an argument with you, but our HCA that we had said that if it expired that we could renegotiate a new one. To me, that doesn’t mean reapply.

“But I think it would make more sense if you started a new host community agreement with Hennep, and if Phillipston signs a host community agreement with them and then signs over the site plan agreement, what that will do is … I will end up selling the property to Hennep. So, it all depends on the town.”

Schmidt had planned to establish his business at 420 State Road/Route 2A, a parcel which he co-owns, and which is located at the corner of Baldwin Hill Road.

“I’m going to try to clarify this again,” Malouin said. “The commercial site plan review has nothing to do with the host community agreement. It’s two separate issues. The commercial site plan review is something the Planning Board approves. That will end up getting recorded and it will run with the property. It isn’t tied to the host community agreement.”

Schmidt clarified that the sale of 420 State Road to Hennep would not take place until after a new HCA has been signed.

Malouin then wanted to know if Hennep would be required to hold another community outreach meeting to discuss its plans with Phillipston residents.

“Hennep actually won’t have to do that,” Schmidt responded. “because we’ve already done one. The community outreach meeting has nothing to do with the town of Phillipston per se. The community outreach meeting has to do with the Cannabis Control Commission and the license.

“I’ve already had a community outreach meeting and am just transferring my license over to Hennep.”

Malouin said he would check with Town Counsel to make sure Schmidt’s assertion is correct.

Koudijs told the board he had already started the process on behalf of Hennep.

“The application was submitted two days ago,” he said, “and I believe yesterday you received the application fee.”

“I’m assuming what (Damon) is telling us is accurate,” said Malouin, “and as long as it is, we’d be more than happy to have you open something up down there. But we just need to follow the process, OK?”

“Of course,” replied Koudihs. “I also believe what he’s saying is true. Once we do enter into a host community agreement, then the license — we will handle that with the state, transferring the license.”

“So, you’re going to kind of buy out Damon and pick up all those pieces and put it together and make it happen?” Malouin queried.

To which Koudijs responded, “Exactly.”

“Bernie speaks for me as well,” said board member Thom Daoust. “We just want to be able to follow the process. We’re not trying to be obstructionist by any means. We just want to make sure we get it done right.”

Hennep currently owns a retail cannabis business in Provincetown and a cultivation/manufacturing operation which is under construction in Franklin.

Greg Vine can be reached at gvineadn@gmail.com