Host community agreement OK’d for Deerfield cannabis testing lab

AP FILE PHOTO/MARINA RIKER

AP FILE PHOTO/MARINA RIKER AP FILE PHOTO/MARINA RIKER

By CHRIS LARABEE

Staff Writer

Published: 08-16-2023 10:17 AM

DEERFIELD — The host community agreement between the town and a cannabis testing laboratory is poised to move forward following a discussion about a tax statute.

Confidence Analytics raised concerns about Massachusetts General Law Chapter 40, Section 57, which gives the licensing authority — in the case of Deerfield and other towns, that is the Selectboard — the ability to revoke licenses in the wake of back taxes, including the licenses of those leasing property, which is what Confidence Analytics is planning to do in Deerfield.

The Redmond, Washington-based cannabis testing company is planning to lease laboratory space on SunnyDayz’s “cannabis campus,” which will be located on Routes 5 and 10 south of the Veterinary Emergency & Specialty Hospital and southwest of Tree House Brewing Co.

“The crux of the issue is we, as tenants, don’t want to feel we are potentially responsible for the tax obligations of our landlords,” said Confidence Analytics CEO Nick Mosely. “The way we see it, this statute says the towns may use it as a tool, but not that the town must use it.”

While the discussion was brought up with SunnyDayz serving as the landlord, there have been no reported issues with the company paying its taxes. Instead, Confidence Analytics wanted to raise its concerns about the process in general.

Town Administrator Kayce Warren said the statute, which cannot be removed by the town because the state put it in place, is an option for the town to get landlords to pay their tax obligations.

“The question is valid, ‘What happens if the owner isn’t paying taxes and we still want to operate?’” Warren said, explaining that this sort of process also invokes a hearing and the Selectboard would be able to make its own decision on revoking a license. “[The statute] doesn’t mean the company leasing is liable for those taxes, only the revocation of the license is a tool available to the Selectboard to encourage the property owner to pay those taxes.”

Mosely suggested Confidence Analytics wanted to ask for a “pro-rata share of our 5,000 square feet,” while Selectboard member Tim Hilchey and Warren said if this process ever began — and it is something they don’t think will happen — their main target would be SunnyDayz, which “has the most to lose” with a cultivation facility and dispensary on the 28-acre parcel.

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“We have far more to gain by using our leverage with the people who, number one, have the responsibility to pay taxes and, number two, the most incentive to pay the taxes,” Hilchey said, adding that while SunnyDayz will be Confidence Analytics’ landlord, it is also a business trying to make money and “there’s no profit in not paying taxes.”

With that said, fellow Selectboard members Carolyn Shores Ness and Trevor McDaniel said they’d be thrilled to move forward with the host community agreement and approved it, pending Confidence Analytics’ review of it. Mosely said the company looks forward to being in town.

“We’re really excited about the prospect of coming out to Deerfield,” Mosely said. “This is hopefully — and I think we all believe — something that will never come up anyway.”

Chris Larabee can be reached at clarabee@recorder.com or 413-930-4081.