2/13/2017 BOARD OF SELECTMEN Minutes

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10 Board of Selectmen Minutes February 13, 2017 OLD BUSINESS Follow-up discussion relative to recreational marijuana, Rodney Collins, Town Manager. With the approval of Question 4 - Legalizing the Recreational Use of Marijuana, there have been questions regarding the implementation of this Act. At the last meeting, the Board of Selectmen voted unanimously to place a question regarding the sale and distribution of recreational marijuana on the May 2017 election ballot to let the voters determine the outcome. To follow up on the conversation an update was received from James Vaccaro, Director of Medical Marijuana of Massachusetts, Inc. It was reported construction regarding the Mashpee Registered Marijuana Dispensary (RMD) is ongoing and remains on schedule. With permitting and inspections, it is anticipated the dispensary would be operational to provide medical marijuana to the Mashpee location in October of 2017. In considering options to increase revenues in the Town of Mashpee to avoid an override in 2021 several cost assumptions were revealed for transparency. Projected tax on the sale of recreational marijuana represents a total projected tax on Cape Cod year-round and seasonal population users at the rate of 2% or $3,001,560. The amount could significantly increase as the legislature is considering a 3% tax which would increase the projected tax to $4,502,340. Cost projections do not include the Outer Cape. The projected sales of recreational marijuana at 2% within the Upper Cape only would amount to $1,332,600 and at the rate of 3% the tax would increase to $1,998,900. Town Manager Rodney C. Collins indicated he is examining all options to increase revenues to avoid a potential override. In terms of looking ahead with regards to the financial forecast and pending challenge to resolve financial issues by fiscal year 2021, Town Manager Collins stated he would not want to be remiss by not considering the potential recreational marijuana revenue stream. In discussing this matter it was agreed the Registered Marijuana Dispensary may be a positive approach as it is designed as a very secure facility. In general, it was agreed if the revenue incentive is beneficial in pursuing tax revenue this may be a positive approach to increase the revenue stream. In further considering this strategy there are additional options the Board would be required to consider such as permitting the RMD of Mashpee to sell recreational marijuana, capping the number of recreational dispensaries to the percentage of liquor licenses allowed in the town and ensuring the levy tax would go directly to the town coffers. The Board agreed to fully examine this endeavor and not miss opportunities for businesses of this type to operate in the Town of Mashpee. It was decided that Town Counsel would be requested to present options and language considerations to the Board for additional review.