By Theresa Knapp 

The Hopedale Select Board has reduced the “impact fee” that marijuana establishments pay to the town from 3 percent to 1.5 percent, and have implemented a $35,000 cap. 

The impact fee is paid quarterly to the town and the money is held until the town identifies a specific impact made to the town by one of the marijuana businesses. The money cannot be used for any other reason. 

Municipalities can set the impact fee up to three percent and the terms are set forth in each Host Community Agreement. 

The regular excise tax - currently set at 3 percent – is not being affected. That money goes into the general funds and can be used in the town budget. 

At its Feb. 14 meeting, for more than hour, the Select Board and residents debated whether the fee should be reduced, if and how to spend the fees already received, how to refund any excess for an establishment that has already met the cap, and what happens to the money if it is not spent within the five year timeframe agreed to in the HCA.

According to Town Administrator Diana Schindler, High Hopes has paid approximately $45,000 and Caroline’s Cannabis has paid approximately $21,000 to date. 

Select Board Chair Brian Keyes started the discussion with a proposed one percent fee and a $15,000 cap, saying the reduction would give owners more working capital to grow their businesses and invest in the community. He noted that, if an impact is identified and a business refuses to cover the cost for some reason, the Select Board could choose not to renew their business license.

Zoning Board of Appeals Chairman Christopher Hodgens attended the meeting and urged the Select Board to find ways to spend the money. He said the businesses agreed to the fee during the application process and he believes there are impacts that can be identified. He also said the ZBA had sought advice from town counsel and is waiting to hear back, and asked the board to defer action on the matter. 

“Only about 1 in 3 communities in Mass. does what Hopedale does and that’s permit marijuana retail or marijuana cultivation. Right there, we’re in a minority. If people recall, we voted on this, it was a ballot question, we also voted on it at town meeting, and one of the selling points was revenue…I think that was a significant factor in many peoples’ minds. I can tell you that this has been a selling point so to speak for each applicant that’s come before the zoning board,” said Hodgens.

Schindler said she had spoken with representatives from the Police, Fire, Highway, and School departments and they did not identify any specific impact from the marijuana businesses. 

Town counsel Brian Riley will seek guidance from the Department of Revenue regarding rules for these funds. “Sometimes the town’s hands are tied with giving it back or doing something with it but this is kind of a unique area, obviously it’s only been around a few years.”