Getting in the zone for cannabis

Ian Brown • May 12, 2020

Dispensary applicants can get a head start on zoning considerations while they await the issuance of licenses

Even though Illinois postponed the deadline to issue new dispensary licenses, now is not the time for applicants to idly sit by. In addition to responding to deficiency notices sent by the State, applicants should be identifying potential dispensary locations. Once conditional dispensary licenses are awarded, successful applicants will have 180 days to “find a suitable physical address in the opinion of the Department [of Financial & Professional Regulation (“IDFPR”)]….” 410 ILCS 705/15-25(e). While an extension of 180 days is possible, it is subject to IDFPR’s discretion and will only be possible if the applicant has “demonstrated concrete attempts to secure a location and a hardship.” Id.

The process of securing real estate and obtaining zoning can be a complicated process even for conventional projects, let alone a novel and potentially controversial project like the location of a cannabis dispensary. It can easily take three to six months to get local government zoning approvals. However, more complex or controversial projects can take even longer.

During those months, applicants will be undergoing a multi-step process that will likely include:

  • Completing the appropriate zoning application(s),
  • Preparing materials including extensive project planning documents for the specific location (which were not required for the application to the State),
  • Working with local government planning staff to ensure all materials are properly submitted and a hearing date is set,
  • Preparing and/or providing legally required forms of notice to surrounding property owners,
  • Presenting the application and project at several meetings and/or public hearings,
  • Addressing questions and concerns of planning staff, local officials and members of the public, and
  • Convincing the local officials to vote in favor of the application.

Before an applicant can even begin taking those steps, it first must determine in which community it wants to locate. While in the typical analysis for traditional retail market capacity and real estate availability are the most important factors in location decisions, zoning calculations play a critical role for cannabis businesses. Unlike other retail, cannabis businesses face a wide array of local zoning regulations including limited geographic areas or even complete prohibitions from the community.

Depending on the community in which an applicant seeks to open and on the project team the applicant assembles, the time required to get zoning approvals will vary greatly. In an industry and economy where every day counts, the difference of several weeks or months could make or break a new company. Shapiro & Associates Law excels in helping its clients through the zoning process of communities throughout Chicagoland and Illinois in an effective and cost-efficient manner. We are more than happy to offer guidance on these considerations during these uncertain times.

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185 New Dispensaries Are On Their Way

By Dan Shapiro • 16 Jun, 2022
The Illinois Department of Financial and Professional Regulation (IDFPR) recently announced the next steps to issue 185 Conditional Adult Use Cannabis Dispensing Organization Licenses to applicants selected in three lotteries in 2021. The Conditional Licenses will be issued to applicants selected in the 2021 lotteries in three waves: Wave 1, on or before July 22, 2022. Naperville-Chicago-Elgin BLS Region. Wave 2, on or before August 5, 2022. Other BLS Regions with multiple licenses available. Wave 3, on or before August 19, 2022. BLS Regions with a single license available. Next Steps Principal officers must submit a Principal Officer Affirmation form no later than July 1, 2022. The IDFPR will then verify all principal officers are not delinquent in taxes or owe money to the State of Illinois and notify any applicant if a principal officer is not tax compliant. The applicant will then have 60 days after notification to prove tax compliance. Any applicant with a principal officer who is not tax compliant after the 60-day period shall forfeit their awarded license, which will then be offered to the next eligible applicant. The IDFPR will also verify that no principal officers have a financial interest in more than 10 Adult Use Cannabis Dispensary licenses. Any applicant with a principal officer who may become a principal officer in any combination of more than 10 Early Approval Adult Use Dispensing Organization Licenses, Conditional Adult Use Dispensing Organization Licenses, and Adult Use Dispensing Organization Licenses will forfeit any license they are awarded. After IDFPR issues the Conditional Licenses, it will conduct background checks of principal officers. Importantly, after receiving a Conditional License, the Conditional Licensees will have 180 days to select a physical storefront location and obtain the full Adult Use Dispensing Organization License (the full list of criteria to be met may be found here ). If a Conditional Licensee is unable to find a suitable physical location within the 180-day period, they may request an extension of 180 days.
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