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Bloom Brothers is one of three cannabis retailers that sued the city over 'unreasonable' host agreements. The council approved a settlement of $786,000 with the companies.

Pittsfield Settles on $786K Reimbursement in Cannabis Dispensary Lawsuit

By Brittany PolitoiBerkshires Staff
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PITTSFIELD, Mass. — The city will refund a sum of more than $786,000 to three local cannabis dispensaries for allegedly "unreasonable" Host Community Agreement fees, a lawsuit that has popped up around the state.

On Tuesday, the City Council approved the transfer and appropriation of $786,625 from free cash for the legal settlement that is years in the making. Temescal Wellness will receive $360,375, Berkshire Roots  $341,000, and  Bloom Brothers $85,250 as legal settlements for the repayment of a portion of fees collected between the fiscal years 2019 and 2022.

Officials report that Pittsfield has so far gotten the "best deal" in the state, representing a 77.5 percent reimbursement.  

"Like many communities in Massachusetts that were faced with the lawsuits for community host agreements, we had been served by all three cannabis companies and settled it," Mayor Peter Marchetti explained.

"We took all the information in the court into account and was able to negotiate the best deal so far that we've seen in the commonwealth."

He said the settling is less than what each of the companies paid into and if the city went to trial and lost, the reimbursement conditions would be "far greater."

This resolves the lawsuits filed by the dispensaries because they believed they were "not reasonably related to the costs imposed upon the city or incurred by the city" as a result of their operations. It also resolves the claims without an admission of liability.

The process began a few years ago when the first company came forward with the complaint, followed by the other two. The parties began aggressively negotiating this year, with the council going into executive sessions to receive updates.

There was reportedly double-digit interest incurring on a daily basis.

Last year, the Cannabis Control Commission approved changes to the state's adult and medical use regulations including policies that implement the agency's oversight of host community agreements, new equity requirements, and suitability reform.

HCAs must now be "reasonable," meaning that conditions can be required under local regulations, necessary for public health, and imposed on non-cannabis businesses. The new regulations also address impact fees, stipulating that the host community cannot collect them if the license is held for more than nine years.

Temescal Wellness, Berkshire Roots and Bloom Brothers were the city's first dispensaries before the litigation came forward and impact fees were done away with. Marchetti reported that one other organization paid the fees but has not come forward.


"We need to have a host community agreement, whether or not we charge fees that go with that is a different story," he said. "So we're in the process of putting ourselves in the safe harbor version of that host community agreement."

When asked his take on the fee structure, Marchetti said it would depend on the conditions and how it was set up.

"I think we all knew it was already starting to bubble to the surface," he said. "I guess the question was what were the cannabis companies going to do?"

Councilor at Large Earl Persip III was the lone vote against it because he simply did not agree.

"I don't agree that these local businesses who, when the Cannabis Control Commission came about and set all the rules, they were very willing and able to pay these fees, understood what the fees were for, they signed these agreements in good faith, and then when they figured out there was an issue with the law and how it was written is when they came back asking for money," he said.

"Now it's coming from the free cash and it's coming from the taxpayer and I don't agree with it."

Persip feels that the state should have reimbursed the companies.

"I think the state Legislature should have got off their buttons because they could have corrected this agreement for everybody and all the cities that are having this problem but they're scared to take it up," he said.

He added that the state "rushed the rules out" in the beginning.

"Everybody was very eager to pay the fees, people were eager to collect the fees," he said.

"And then when the state realized that there was some legal issues around the language, they changed it and then they changed it without considering the consequences for the local taxpayer and they could have addressed it in their legislative session and helped us out and they didn't."

In response to the changes that the CCC has made, the city has proposed a new ordinance to address equity requirements and allow the mayor to set policy regarding host community agreements.  It was approved by the Community Development Board and referred to the subcommittee on ordinances and rules.


Tags: cannabis,   lawsuit,   

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BRTA Focuses on a New Run Schedule

By Breanna SteeleiBerkshires Staff

PITTSFIELD, Mass. — The Berkshire Regional Transit Authority is still working on maintaining its run schedules after dropping the route realignment proposal.

Last Thursday's meeting was Administrator Kathleen Lambert's first official meeting taking over the reins; retiring director Robert Malnati stayed during a transition period that ended last month.

Lambert is trying to create a schedule that will lessen cancellations. There was a two-hour meeting the week before with the drivers union to negotiate run bids and Lambert is working with the new operating company Keolis, which is taking over from Transdev.

The board spoke about anonymous emails from drivers, which Lambert said she has not seen. iBerkshires was not able to see those letters, but has received some. 

"They were lengthy emails from someone describing themselves as concerning BRTA employee, and there was a signed letter from a whole group of employees basically stating their concerns. So, you know, to me, it was a set of whistleblowers, and that, what my understanding is that this really triggers a need for some type of process to review the merits of these whistleblowers, not going to call them accusations, but basically expressions of concern," said member Stephen Bannon.

A letter iBerkshires received spoke of unhappy drivers who were considering quitting because of decisions being made without "input from frontline staff," frustration and falling morale, and the removal of the former general manager shortly after Lambert came in.

Lambert said it's difficult to navigate a new change. She also noted many drivers don't want to do Saturday runs and it has been hard negotiating with drivers on the new runs.

"I would like you all to keep in mind that the process of change is super difficult. Transdev has been here for 20 years, and some of these drivers have never known any other operating company, the way some of the operations have been handled has been archaic," she said. "So getting folks up to speed on how a modern transit system works is going to be painful for them. So I don't want to say that I'm unsympathetic, because I am sympathetic, but I am trying to coax people along with a system that's going to seem very strange to them."

The board spoke about better communication between them and Lambert, citing cooperation will be best moving forward.

"There's just a lot of stuff in the air right now, and there are a lot of fires to put out to make this a coordinated effort. And if we don't keep our communications open and be straightforward, then you get blindsided about how you know the input that you could get from us about your position, and how you know what's going on in your direction, and we get blindsided. And I think that we have to make sure that this is a collaboration," said member Sherry Youngkin.

"Both sides have responsibilities, because in the long run, this advisory board is going to have to make decisions as to how we brought forward and if we've gone forward in a fair and helpful way. And I think that's hopefully what everybody is looking for also." 

Transdev and Keolis held a three-day recruiting event interviewing almost 40 candidates and offering jobs to eight, but only three stayed on to start training. Lambert said it was disappointing but she will keep trying to retain more people.

In her first report to the board, she noted that ridership dipped a little over 10 percent, but still remains higher than last year, adding that was because of cancellations of services because of the lack of drivers.

Like the last meeting, some of the advisory board members were torn over the start of the Link413 service, worried that the start of the service took drivers away and the numbers of riders are low.

Lambert, however, said the ridership has doubled from last month.

"As I've spoken before, we have, generally, a six-month adoption for brand-new service before you can really go in and evaluate, are you being successful based on the grant that my predecessor wrote along with the team for PBTA and RTA, we are ahead of schedule, which is pretty good, so I'm hoping that will continue to improve," she said.

Member Renee Wood said the board never approved the service, adding the only thing she could find in the minutes was a vote to accept the equipment. She said it was supposed to be put on the agenda to discuss.

"The Link413 service has been three years in the making. It's been a grant that was accepted and has been working with our partners, PVTA and FRTA, to put into place. So I don't have the entire history of how that process worked, but it's been three years in the making, and did we not understand that once we accept that grant that we were going to put in new service?" Lambert said.

The board discussed if Title VI, the Civil Rights Act, was followed with an accurate review and accurate amount of time for public comment period on the service changes and if its attorney should review if the  grant conditions were properly followed.

Lambert said changes had the 60-day comment period included in the proposed route realignment packet, giving the opportunity for the community to respond to that as well but will look into the legality of the situation with their attorney.

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