HomeMy WebLinkAboutPhase 1 hypothetical examples and explanation for mm provisioning scoringExamples of High Scores – Phase 1
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1.Marketing,
Advertising and
Promotion
Applicant provides several marketing,
advertising, and minor minimization examples.
(1)State the packaging will be child-proof and
(2)not include any cartoon-like images, and
they will (3)not advertise in public spaces, such
as billboards or bus stops, in order to avoid
exposing minors.
All advertisements will be through WeedMaps,
opt-in SMS messaging and emails, Leafy, and
relying on word-of-mouth. Would also be
focusing on community education to help
spread the word. Want to educate citizens,
especially minors, about drugs and prevention.
• 4 = More than two Marketing, Advertising and Promotion and minor
minimization (MM) examples provided; with comparatively
excellent detail;
Beyond the minor minimization the applicant would include the
demographics that they would be advertising, and marketing to, along
with through details as to how the intend to advertise, and market their
company.
How and why the applicant is choosing this strategy and how they
intended to implement it.
• 2 = One MAP and MM example provided (satisfactory detail);
Only one example was included with the application with details on how,
and why this strategy will be utilized.
Page Length of High Quality Plan
Typically 4 or more pages.
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2.Tangible
Capital
Investment in
the City of
Lansing
Will be purchasing several, or have already
purchased, building for their provisioning
center and 2 grows totaling $672,000. Will be
updating and improving each building for
$412,000 altogether. Provides addresses,
square-footage, and purchase agreements for
each building. Has information on local
companies they will be using to aid in
improving the buildings. States that money will
coming from personal accounts and business
accounts for each center
• 15 = Excellent: applicant states they will own the facility or leased
property is owned by member(s) of the application team, robust
discussion of sister companies, capital amount, tax revenue,
complete support documentation. At least $1 million in TCI;
3 points will be deducted for the following:
• Investing less than $1 million in the City between this provisioning
center and other businesses.
• Leasing building instead of owning
• No discussion of a grow or processor
• Lack of detail
Because of the City’s declared interest in promoting economic
development, including job creation and training, Tangible Capital
Investment shall include proposed medical marihuana establishments.
Factual data must be presented to support each claimed proposed
medical marihuana establishment. Based upon the information provided
by the applicant, the City may consider whether the proposed medical
marihuana establishment is definite, feasible, or speculative. The Clerk’s
Office defines a tangible capital investment as an asset that has a physical
form.
Page Length of High Quality Plan
Length will vary depending on length of purchase agreements or leases.
Actual TCI narrative usually 3-4 pages in length.
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3.Job Creation
(Integrated
System)
Overall number
of jobs created
25 jobs at each provisioning center with 12
being part-time at each center. 180 jobs at two
grow facilities. Totaling 205 jobs between this
center and grows. Grows will be 1,500 plants
each.
Includes information on employee benefits.
(Vacation and sick days, health insurance, and
bonuses). Has employee training manual and
handbook.
Plan to advertise about jobs specifically within
Lansing.
States there will be General Managers,
Assistant Manager Shift Leaders, Inventory
Manager, Quality Assurance Manager, and
Sales Associates.
• Example of Job description: GM
oversees provisioning center operations,
and ensuring that the company policies
are being followed. Coordinates the
hiring of all employees and maintains
the paperwork. Works with other
• 5 = More than 200 City, Region, and State (CRS) jobs, comparatively
excellent detail provided about job types, local hiring priority, shifts,
etc.;
Constructions, tradesmen, and other temporary jobs do not count toward
this total.
Lists each job type, along with a description of the duties, and the salary or
dollar amount per hour.
• 4 = > 100 jobs, good detail, or > 200 jobs but lacking detail
• 3 = 20 to 100 CRS jobs, comparatively good detail provided about
jobs;
If the application has through detail as shown above, but will be creating <
100 jobs.
Based upon the information provided by the applicant, the City may
consider whether the proposed medical marihuana establishment is
definite, feasible, or speculative.
Page Length of High Quality Plan
Could be anywhere from 5-15 pages depending on how many different
types of positions are being created.
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managers to ensure that departments
are preforming to top standards, and if
not works with them to bring them back
up to top performance. They are
expected to maintain a professional
demeanor and have the ability to work
in an inclusive environment. The
qualifications are listed below. If hired
the compensation will be a yearly salary
of $50,000.
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4.Financial
Structure and
Financing
Provides bank statements for business
showing $500,000. Provides CPA attestation of
net worth for $5 million. Provides proof of
liquid assets worth $1 million. If needed they
have access to a line of credit for $1.5 million.
Already has ownership of the building. Has
sufficient money for start-up costs and
improvements for the building.
Includes estimates from building companies to
supplement their improvements. Has all costs
outlined within the budget.
• 3 = Description details how capital is linked to jobs, net worth,
bank/other statements confirming funding availability, complete
and clear support documentation;
State how they will be funding all operations.
Provide proof of where funding is coming from and how much is included.
Can include:
• Tax returns
• Bank statements
• CPA attestations
• Net Worth
Explanations on how this money will be used in conjunction with the
business plan, expenses, asset liquidity and other costs.
• 1 = Proof provided of capital access but not tied to business plan;
Page Length of High Quality Plan
1-2 pages
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5.Plans to
Integrate
Facility with
Other
Establishments
Plan to work with a grow (states business
name and location). It is listed to have 1,500
plants.
• 2 = Integration with large grower facility (either > 10K sq. ft. or
1,000 plants);
Must list who they will be working with, whether it be with themselves, or
an outside group.
Needs to have either square footage of facility or number of plants.
• 1 = Integration with small grower operation (< 1,000 plants or 10K
sq. ft.), OR a good plan to get product elsewhere, OR doesn’t specify
the number of plants or grower facility square footage;
Only state that they will integrate, but do not include business’ details.
Such as name, plant amount, or square footage.
Page Length of High Quality Plan
About 1-2 paragraphs
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6.Charitable
Plans and
Strategies
Includes a letter of intent to donate 3% of all
sales at the end of the year to the WWF.
Includes signed letter of intent to organization.
State will get involved with community
projects such as food drives, DARE, coat and
toy drives. Will encourage all employees to
volunteer (give days off to employees).
• 4 = At least one targeted charitable organization example, dollar
amount $50K or more (or based on % of sales/profits), support
documentation (e.g., confirmation of payment, commitment letter
signed by organization);
Must include either signed confirmation of payment to charity, or a signed
letter of intent to donate to the organization.
• 3 = At least one organization example, dollar amount between $25k
and <$50k (or based on % of sales/profits), no payment
confirmation or executed payment agreement;
• 2 = Discussion on intent to donate to organizations, but do not
include a dollar amount, and payment confirmation or agreement.
Page Length of High Quality Plan
Usually a few paragraphs to a 1 page, not including any letters or other
official documents to show payment or agreement
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7. Number of
Jobs at the
Provisioning
Center
Category
Thresholds: 1 =
< 6 jobs,
insufficient
details; 2 = < 6
jobs, sufficient
details; 3 = 6
jobs, sufficient
details; 4 = > 6
jobs
insufficient
details; 5 = > 6
jobs,
sufficient/good
details.
State that there will be 13 total jobs at this
location. 5 will be part-time employees. Lists
each job type, along with a paragraph or bullet
point description of the duties. The lowest
paid employee will be paid $17/hour. Includes
salary for managers.
Includes information on employee benefits
such as sick days, bonus’s, vacation days,
health and dental insurance for full-time
employees.
Employee education plan outlining how they
will teach employees to safely handle product,
interact with the public, and learn about the
effects of MM, including the strains they
intend to have in stock.
Mock shift schedule, employee handbook, and
employee expectations.
Specific to this center’s application. Other locations are not included.
5 = > 6 jobs, sufficient/good details.
Must be at more than 6 full-time positions within that specific center.
Must include:
• Distinction between full-time and part time
• Job titles and duties
• Benefits
• Salary or amount/hour
• Details about training
• Hiring practices
2 = < 6 jobs, sufficient details;
Page Length of High Quality Plan
Varies, and may be part of other materials
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8.Amount and
Type of
Compensation
(PC)
Applicant indicates all employees will earn at
least $20 per hour. Will be paid every two
weeks. Included within the budget.
• 2 = Higher pay and compensation detail (e.g., % earning at least
$15/hour);
Must be at $15/hour or above.
• 1 = Lower pay and/or compensation detail;
Page Length
N/A
9.Percent of
Employees
Earning At
Least
$15/Hour) (PC)
Applicant indicates all provisioning center
employees will earn > $15/hour.
• 3 = 100%;
• 2 = >75% to <100%;
• 1 = Up to 75% of workforce would earn at least $15/hour
Page Length
N/A
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10.Projected
Annual Budget
and Revenue
(PC)
Includes several pages of projected budget.
Has line items of all expenses, and sales (1.4
million in expenses, 1.8 in sales). Explain their
numbers have come from previous years of
owning a medical marihuana center, and
having several small businesses between all
stakeholders.
• 2 = Response includes specific annual revenue and expense
numbers for the provisioning center of interest with some level of
line item detail in a clear, understandable, and logical manner;
• 1 = Have outline of a budget
Does not include detailed list of projected costs and gains, only give a
broad overview. No line items.
Does not state where they got their numbers from.
Page Length
Several pages of budget and Pro forma tables and at least a page of
explanation. Typically will have at least a year into the future, preferred to
have several.
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11.Sufficient
Financial
Resources
Provides litigation compliance verification
forms for all stakeholders. While there were
some issues, they have been resolved. Proves
they have well over $100,000 in the bank and
over $1 million in liquid assets.
• 5 = Excellent, high level of detail provided, no money owed to
city/bankruptcy history, stable business financially, at least $100k
net worth/in bank, litigation compliance verification forms provided
for all stakeholders mentioned in the application, and proof of other
assets and/or financial support source;
Provides bank statement of business, CPA attestation, or any other
documentation with proof of financial resources.
• 3 = Satisfactory details provided with up to one litigation blemish,
and litigation compliance form(s) missing;
See #25 Litigation History for more detail on litigation compliance
verification.
Page length
Varies depending on documentation given
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12.Business
Experience
Five stakeholders have several years in the
medical marihuana industry, totaling 12 years
together. Indicates decades of other applicable
experience (retail, real estate, local business
management, and legal).
• 5 = 10 or more years of team-combined experience in MM industry
(e.g., Provisioning Center, Grower, Processor operations);
Caregivers experience is discounted 25% because not commercial
experience.
• 4 = 7 to < 10 years MM industry experience;
• 3 = 5 to < 7 years MM industry experience (or 20+ years related
industry);
Page Length
Depend on number of stakeholders and length of their resumes.
13.Content and
Sufficiency of
Information;
Professionalis
m of submitted
documentation
including clear
labeling of
required items
Clear and understandable table of contents. All
information is accounted for and easily
findable. Found short and long term goals in
business plan.
• Top Score: 5 Points
• Clear and easy to navigate to find criteria information
• Inadequate Table of Contents
( 1 pt deduction)
• Inadequate Short and Long term goals
( 1 pt deduction)
• Letters to cure were sent because
application did not fully comply with the Lansing ordinance ( 1 pt
deduction)
• Incomplete information provided (1 pt deduction)
Page Length
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N/A
14.Buffering
between
residential
zoned areas
and
establishment
Building is 1542 ft. from residential zoning,
includes fencing between their property and
those around them. Has landscaping close to
fencing.
• 5 = Radius of 1320 ft. (1/4 mile) of the facility does not touch any
residential zoning
• 3 = Residential zoning does not touch the property line of the med
marijuana establishment
• 1 = Residential Zoning on 2 or more side of the property line
By reviewing Zoning Map, and confirmed by using Google maps to
determine distance.
Page Length
N/A
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15.Increased
traffic on side
streets will be
scored lower
No exit of side streets, signs on driveways
indicating traffic, more than enough parking
for building
Review by Public Service by Traffic Expert ( 5pt weight scale)
• Traffic Patterns
• Driveways
• Adequate Parking
• Circulation on/off
• ADA
Page Length
N/A
16.(50%)
Entrance and
exit on main
streets,
adequate
parking not on
residential
streets
(50%) Quality
of Security Plan
Offsite video storage, uniformed security
guard at entrance, security camera layout
included, metal detector upon entering, panic
buttons, several safes, and waiting room for
patients.
Includes safety training for employees
Description for all equipment, and security
personal
Traffic Plan
Review by Public Service by Traffic Expert ( 5pt weight scale)
• See above, same score used twice
Security Plan
• TIER 1 = 5 points Well written plan, appears to meet or exceed
Lansing City Ordinance requirements
• TIER 2 = 2 points Meets minimum requirements, may require some
correction.
Examples of common missing info
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No exit of side streets, signs on driveways
indicating traffic, more than enough parking
for building = 5 points
• Boiler plate not customized
• No off-site video storage
• No or minimal description of equipment
• No safe
• Lack of entry barriers
Based upon State requirements for a Security Plan, and is reviewed by the
Lansing Police Department.
Page Length of High Quality
Most plans would be above 30 pages.
17.Plan to
meet with
neighborhood
organizations,
Application indicated that they are planning to
meet with neighborhood organizations,
business association, crime watch, or other
neighborhood organizations
Detailed Plan: 1 Point
Page Length
Typically half a page in length.
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18.Improveme
nts made or
proposed to
building
The SEV of the building is $120,000 and list the
improvement budget at $500,000. They are
investing 417% back into the building.
Percentage of the dollar amount invested in upgrading the location in
comparison to the SEV (State Equalized Value) of property
3 pt – Investing 125% over the SEV value
1 pt Investing 25%- 74% over the SEV value
Usually listed with the budget and explanation of improvements included
either after the budget or in the business plan.
Doesn’t include furniture, or inventory
Improvements made specifically to building or property that cannot be
removed.
Page Length: N/A
19.Plan to
minimize/elimi
nate traffic
Closing one driveways in order to direct
patrons away from heavy traffic. Including
signs that direct drivers to turn a specific way
when leaving in order to mitigate accidents or
traffic back-ups.
Detailed Plan: 1
A narrative description to reduce car traffic
We did not assess building or floor plans to determine if they had a traffic
plan. It had to be included in the narrative.
Page Length
Varies
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20.Plan to
minimize/elimi
nate noise
Sound-dampening fences between them and
other lots.
Landscaping separating the lots
Disallowing loitering outside of the building or
in the parking lot.
Any equipment to be used would not be
creating loud noise.
• Detailed Plan = 2 Points
Included information about how they will limit inside AND outside noise.
We did not assess building or floor plans to determine if they had a noise
plan. It had to be included in the narrative.
Page Length
Usually about a 1-2 pages. Longer if includes estimates and specs for any
equipment.
21.Plan to
minimize/elimi
nate odor
Includes full list of equipment, what it does
and how it will be implemented into the
building. Has a staff training outline on how to
prevent odor and how to respond to any
system issues. Has scheduled air quality
checks.
• Detailed Plan = 3 Points
Page Length
Typically several pages long with lists of equipment and any supplemental
information such as staff training, or odor tracking system.
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All product will be stored in vault with carbon
filters. Packaging will attempt to mitigate odor.
A grow is included on site, but access will be
through several doors, including one air-tight.
22.LPD
Complaints
No calls • No calls/new build - 4 pts
• 1-5 calls - 3pts
Regardless of property ownership, facilities that have a history of police
incident are a less desirable location for the City.
Page Length
N/A
23.Demo of
Regulatory
Compliance
No tax issues, trash and grass fines but were
unrelated to center.
Max Points: 4 Points
Review of individual and business history with Treasury, Building Safety,
Code Compliance, Zoning and compliance with MMFLA.
• Major tax issue = deduct 2 pts for each issue
• Minor tax issue or code compliance = deduct 1 pt for each issue
• Insurance submission failure=Missing more than one
element=deduct 2 pts
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• Missing 1 or more elements = deduct 1 pt
Page Length
N/A
24.Litigation
History
Litigation forms were submitted for all
stakeholders, some history was disclosed. Suits
involved debt collection, and landlord/tenant
disputes. All cases were resolved. Full points
were awarded.
Example of 2 point disclosure:
2pt - All stakeholders have a complete litigation history with no or
minimal issue
LARA litigation form or application attestation is not sufficient. LARA is
not sufficient because it does not go back far enough in history.
Can include signed form that states they have no history, or signed form
disclosing any issues. Does not have to be notarized or legal form.
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Applicant states that they were involved in a
court case, (states name of case), with a
previous land-lord over a rent dispute. The
case was pertaining to the land-lord stating
the tenant had not paid rent in full and was
still owing the land-lord. The judge ruled in
favor of the applicant and the case was
resolved.
Example of 1 point disclosure:
There is no active business litigation history
against the applicant or business, nor has
there been in the last 10 years.
Must provide something even if there is no history.
Needs to be clear and straightforward information about business
litigation.
Page Length
Varies depending on history