Published: 7/13/2020 2:14:28 PM

Modified: 7/13/2020 2:14:25 PM

ATHOL The Selectboard last Tuesday approved a host community agreement with a company with plans to open a marijuana delivery business in Athol.

The attorney representing Treevit, Phil Silverman, told the board, Basically, the company is a marijuana delivery service that would deliver from retailers to individuals at their home. This is a new type of license.

If we do move forward, and were able to get a host community agreement, well probably be one of the first companies in the state of its type. Its a little bit unusual. This type of license, for the first two years of operation, is not open to all (job) applicants.

Silverman explained, The individuals that work for (the company) are from historically impacted areas; impacted by the war on drugs and such. The state is really trying to encourage these companies to give them a lift and allow them to move forward and engage in the industry.

Silverman said the board has more experience than most others in the state when it comes to working with cannabis companies and working out HCAs. The one with Treevit would differ from those previously agreed to with retail and cultivation operations.

Youre used to seeing impact fees in these host agreements, usually up near three percent of gross revenues, said Silverman. Thats not something that could really work with a company like this.

He explained further that Treevit would provide delivery services for area cannabis retailers, but operate independently.

This is not a company that buys its own marijuana or grows its own marijuana. So, it just doesnt have the kind of margins that you would see with the other companies where, because the retail price of marijuana is as high as it is, they can really afford to pay a three percent impact fee.

Silverman said another option, based on company revenue, was worked out with the town.

Weve been struggling, trying to come up with something that will approximate what the impacts are on the town, he continued. So, we came up with a structure where theres a base fee every year for five years. In the first year its $1,500, in year two $2,500, for years three, four, and five, the same $2,500.

Payments in the last three years of the agreement could increase if company revenues reach certain benchmarks.

Town Counsel John Barrett said language in the agreement should be tweaked to clarify exactly how the fees will increase with each million dollars in revenue earned by the company.

Town Manager Shaun Suhoski said the town also stands to receive additional revenues.

One of the other agreements in (the HCA) is that any vehicle owned by the company will be registered in Athol, so as the business grows and the fleet becomes extensive, the town will also receive excise tax revenue from the company.

Board member Stephen Raymond posed a question regarding security.

Usually, it would be set up through the retailer, Silverman responded. And there are pretty strict protocols on how deliveries work. You have to have two agents of the company in the vehicle at all times. All vehicles have cameras, GPS devices. There are no stops along the way. Theres a manifest signed before the vehicle leaves the retailer with the product that shows everything thats in that vehicle. He also said identification is checked at each delivery and that recipients of the cannabis must also sign the manifest, signifying they have received their order.

Ultimately, the board voted unanimously to approve the HCA.

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Athol Selectboard approves host agreement with 'weed-on-wheels' business - Athol Daily News