ANN ARBOR, MI — Ann Arbor is getting its first commercial marijuana consumption lounge and officials say it also will be the first of its kind in Michigan.
Plans are in the works to convert the pink house at 336 S. Ashley St. — next to the Liberty Provisioning Center marijuana dispensary on the west edge of downtown — into a lounge allowing onsite consumption of cannabis products.
The city’s Planning Commission OK’d a special-exception use permit for it Tuesday night, May 4.
Permit conditions state the lounge can be used only by customers of the adjacent dispensary and their guests and it must be operated in a manner that will not have an adverse impact on the neighboring properties or area.
In addition to a city permit, the owner needs to obtain and maintain a state license for the lounge.
The company behind the business is Holistic Industries, which describes itself as the country’s largest privately held cannabis operator with operations from California to Washington, D.C. Its flagship retail and wholesale brand is Liberty Cannabis.
“Liberty’s proposed consumption facility would be the first of its kind in Ann Arbor and the state as a whole. Honestly, it’s a historic opportunity and one that we believe Liberty is best suited to bring to life,” said Rabbi James Kahn, the company’s director of community outreach.
The company was founded in 2011 in Washington, D.C., and is on a mission inspired by the stories of people who have been positively impacted by the cannabis plant, Kahn said.
“We wish to provide safe access to cannabis,” he said. “For many of our customers, having a safe space to consume cannabis can be a real challenge. Those who live in public housing or who rent could face possible eviction for using cannabis in their homes.”
They also want to build community by creating a space where people can socialize, he said.
“Consider those who may own their own home but who live alone and may wish to experiment with cannabis for the first time in a safe and supportive environment with people who can educate them about cannabis use,” he said.
The two-story house where the consumption lounge will be located was once a single-family home that was converted to commercial use years ago. It previously housed the Muse Atelier vintage clothing store.
Reservations will be required to access to the lounge, with 45-minute blocks free for customers and patients who can show a same-day receipt from the dispensary next door. For members of a party who do not have a same-day receipt, the fee for 45-minute entry will be $10 per person.
Hours of operation are expected to be noon to 8 p.m. daily with the last reservation accepted at 7:15 p.m.
Maximum occupancy is 19 people, though initially the business plans to only allow up to two groups of four at a time, for a max of eight people. It plans to revisit occupancy limits in the future in consideration of public health protocols and customer needs.
“All of our plans are COVID contingent, which we take into account in every aspect of our operations,” Kahn said.
There will be a front check-in area, service counter, restroom and consumption lounge on the first floor, and an employee break area and manager’s office upstairs. Visitors will need to show ID to verify they are at least 21 years old.
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Kahn assured city planning officials the business wants to be a good neighbor.
“We have a five-year track record in Michigan with locations in Detroit and Ann Arbor and a new campus opening in Madison Heights in early June,” he said. “On a local level, investing in Ann Arbor with our provisioning center and now with our proposed consumption lounge means more staff, all hired from the surrounding community, making a livable wage with good benefits that include health care and PTO.”
Many of the company’s owners, board members and staff call Ann Arbor home and others are passionate University of Michigan alumni, Kahn said.
“Liberty’s proposed consumption facility is a perfect example of our continued local investment, responding to the needs of our customers, while simultaneously creating new jobs,” he said.
The company’s primary goal with the lounge isn’t to make money but to expand offerings to customers, Kahn said.
People have a right to access cannabis, but arrests can go up in places that legalize it when an increase in access is not matched with an increase in places to use it, he said.
“And so often people are using it in parks or outside on the streets,” he said. “And unfortunately, the folks that seem to get arrested in those moments are often people of color, so it really becomes an issue of of racial justice as well.”
New foam insulation in walls and an industrial air-filtration system are among the features planned to keep odor from emanating from the building. Cannabis consumption outside the building also will be prohibited.
All smoke and odor will be rapidly eliminated and recycled or released from the roof as odorless scrubbed air, according to the company’s plans. The space will be hermetically sealed and cannabis odor will be undetectable from the street, Kahn said.
“The existing building will be renovated to accommodate the consumption facility, fixed bicycle hoops will be installed in front of the site, and an accessible entrance ramp will be constructed at the rear of the building,” a city planning report states, noting future plans include enclosing the covered front porch.
In addition to the company’s commitment to LED lighting and extra insulation, commissioners encouraged the team behind the lounge and dispensary to consider more ways to be environmentally sustainable, including installing solar panels on both roofs. Company representatives said they’d consider it.
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