Eyeing Ohio’s aspiring marijuana growers: Two set sights on Clinton County

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CLEVELAND (AP) — Long-time natives and carpetbaggers. Construction magnates, toy tycoons, an Olympian and an heir to the Jim Bean whiskey fortune.

These are some of investors vying to win approval to grow medical marijuana in Ohio. The state accepted 185 applications in June and now has to decide who gets the 24 cultivator licenses available.

Ohio’s medical marijuana law, passed last year, allows people with 21 medical conditions, including cancer, Alzheimer’s and epilepsy, to purchase and use marijuana after getting a doctor’s recommendation. The law doesn’t allow smoking.

Ohio has some of the country’s highest licensing fees. Small growers pay $2,000 to apply and $18,000 in licensing fees, while large growers pay $20,000 to apply and $180,000 in licensing. The applications will be scored out of 100 points based on their business plans, cultivation methods and past industry experience.

The estimated cost of opening a facility runs from the hundreds of thousands to the tens of millions. Yet that hasn’t deterred local business owners, minorities or investors from California to Pennsylvania from applying.

They find Ohio attractive because they believe it’s learned from the lessons of other states, from federal raids on Montana cultivators to harsh restrictions in Illinois that hampered patient access and curbed demand.

“They’re paying attention and adopting what works and improving what didn’t,” said Chris Lindsey, a legal analyst with the Marijuana Policy Project. “That puts Ohio really far, far ahead of the game compared to a lot of other states.”

With so much at stake, groups have scouted medical professors and hired seasoned consultants to boost their chances. Some declined to speak because they did not want to jeopardize their applications. Ohio hasn’t announced when licenses will be issued, but the program is due to be fully operational by September 2018.

A look at some of the players involved and their company names:

2-3 GROUPS EYE CLINTON COUNTY

A group of three people applied for a cultivation license that would pave the way for their company to build a medical marijuana growing facility in Wilmington, the News Journal reported in March.

CannAscend Ohio LLC announced plans to build on Davids Drive, pending state licensing of the group’s application to grow medical cannabis.

They applied for one of 12 of the state’s Level I licenses which permits operating a facility with up to 25,000 square feet of growing space.

CannAscend Ohio is headed by Jimmy Gould, Bill Brisben and Ian James. Gould and James were behind a 2015 effort to legalize medical and recreational marijuana that was defeated at the ballot box, according to a cleveland.com report.

The proposed facility would be built on land owned by the Community Improvement Corporation (CIC) of Wilmington. The CIC of Wilmington is a not-for-profit community development organization that facilitates industrial and commercial investment to promote economic development and job creation, according to its website.

The second application for a medicinal marijuana growing facility in Wilmington is for a smaller, Level 2-size operation.

The proposal was submitted by Ancient Roots LLC, headed by David Haley of Lebanon, Ohio.

The site he is eyeing is about eight acres off U.S. 68 South within the city limits. The location offers access to the Interstate highway system which is key, he said, as cultivators can sell directly to processors or dispensaries and thus take part in making deliveries to those businesses.

The News Journal on Monday was attempting to confirm a third cultivator-license applicant to locate an operation in the Clinton County area. At presstime, there was no official confirmation.

HOMETOWN HEROES

Brian and Daniel Kessler — Riviera Creek Holdings

Brian Kessler, whose father patented an early version of the hula hoop, made his fortune running a toy company until he shifted to investing in marijuana. He and his nephew, Daniel, both Youngstown natives, say they want to avoid what they call the “Taj Mahal” syndrome — building too quickly. They say they want to start small and monitor patient numbers before expanding production.

They plan to grow their marijuana using a closed-circuit hydroponics system they say minimizes the chance for infestation.

The Kesslers say they’re determined to bring jobs to Youngstown and hope their local roots will give them a boost in the competition for a license.

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MINORITY-OWNED BUSINESSES

Dana Smoot — Under the Water Tower

Smoot is the legal counsel for Smoot Construction, a prominent Columbus-based, African-American-owned construction company that has worked on projects at Ohio State and the recently opened African American Museum of History in Washington. Smoot did not respond to messages seeking comment.

Ohio’s marijuana program stipulates that 15 percent of licenses must go to a minority-owned group — black, Hispanic, Asian or Native American. Legal experts have questioned whether the quota would stand in court, though no legal challenge has been filed to date.

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OUT OF TOWN INVESTORS

Ben Kovler — Green Thumb Industries Ohio

Kovler is a Chicago investment banker whose grandfather, Everett Kovler, was president of the Jim Beam whiskey company in the 1970s. Kovler started in marijuana three years ago by founding Green Thumb Industries, which is headquartered in Illinois and now operates in six states.

He says he plans to invest about $10 million if selected. His facility will grow 20 to 50 strains of marijuana to make oils, pills and slow-release patches that will help patients fall asleep at night.

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LOCAL POLITICIANS

Chad Oberson — Oberson’s Nursery and Landscapes

Oberson runs a plant nursery and landscaping company in Fairfield. Oberson is also a Fairfield councilman, elected to a non-partisan position, and voted in April for a local ban on medical marijuana which passed unanimously. He declined comment.

Last month Ancient Roots LLC President David Haley spoke about his proposal for a medicinal marijuana growing facility in Wilmington at a meeting of the city’s planning commission.
http://www.wnewsj.com/wp-content/uploads/sites/22/2017/07/web1_Haley-speaks-1.jpgLast month Ancient Roots LLC President David Haley spoke about his proposal for a medicinal marijuana growing facility in Wilmington at a meeting of the city’s planning commission. News Journal file photo

By Dake Kang

Associated Press

and News Journal

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