CONWAY — Nearly five months after agreeing to hold further discussions, Roaring Glen Farms LLC appeared before the Planning Board Thursday night to appeal for a waiver from a section of Conway’s bylaws regarding ownership transfers.
The company, which was issued a special permit in March 2020 to operate a recreational marijuana cultivation facility at 40 Whately Glen Road, is seeking to waive Section 11.5R of the town’s bylaws because the business is seeking to operate as a cooperative farm. The bylaw states a special permit will expire if more than 10% of ownership is transferred, which the farm’s attorney says would prevent the business from getting off the ground because investors would not be able to help fund the high start-up costs.
“The reality is that starting a cannabis cultivation business is a very expensive proposition,” said attorney Tom Lesser, who represents Roaring Glen Farms’ owners John Moore and Lisa Gustavsen. “There are incredible regulations concerning security, concerning going from seed to retail in terms of every plant of marijuana, and all that adds up to a lot of money, which an individual — unless they have millions of dollars — cannot undertake.”
Moore said in July he owns 51% of the property while Gustavsen owns 49%. They are seeking the ability to sell shares of the farm to help fund and begin operation.
Lesser said they are only seeking a waiver for Section 11.5R and not other conditions on the permit because the bylaw directly impedes how the farm would operate. He argued the Planning Board should not concern itself with stakeholders in the farm anyway because the special permit is issued to Roaring Glen Farms LLC and not Moore or Gustavsen personally.
“I don’t think it matters whether John Moore, Lisa Gustavsen, Elon Musk or Jeff Bezos have stake in Roaring Glen Farms LLC,” Lesser said. “What’s important to the neighborhood is how does the farm operate. It doesn’t matter one iota who owns it. … This section we’re requesting a waiver from has nothing to do with location or site development.”
Lesser added the state Cannabis Control Commission (CCC) would do extensive background checks on any potential investors.
Under the bylaw, if Roaring Glen Farms sold a stake larger than 10%, the special permit would be revoked, which would instantly cause the farm’s CCC operational license to be revoked, too.
“The process to get a special permit and approval from the Cannabis Control Commission — which has been done in this case — is expensive and takes approximately two years,” Lesser said. “It’s impracticable to come back every time there’s a new farmer that gets involved.”
Associate Planning Board member Joe Strzegowski — who is a voting member for the matter — said the town should have a say in who has a stake in the farm if large portions of the LLC change hands. He added the town’s bylaw acts as a safeguard if something slipped past the CCC.
“To me, there’s a point where they give up more than 49 or 50% of ownership that the town has a right to request a new special permit,” Strzegowski said. “If the Cannabis Control Commission doesn’t get the budget they want, they can’t hire the inspectors to do all this. By putting in this bylaw, it gives us a little more edge.”
Fellow member Bill Moebius disagreed and said personnel matters are outside the Planning Board’s “turf.”
“The way something is run is not our decision,” Moebius said. “I’m really wondering why we think we can manage the company, so to speak, by telling them the employees have to be vetted or something like that. I find it problematic.”
The Planning Board began deliberations Thursday night, but did not come to a decision. Strzegowski said he would be willing to raise the 10% limit, but not completely remove it.
“I have absolutely no problem with getting rid of the 10%,” he said. “I feel like if we totally eliminate that section, we’re setting ourselves up for massive pushback at some point.”
Planning Board Chair Beth Girshman said she wished these issues “had all been brought up when we originally deliberated,” but she is hopeful board members can find a solution that won’t have sweeping effects on the town.
“I’m certainly willing to figure out how we can do this without setting a precedent for our bylaws,” she said. “(We can try to) find a way to compromise here so this business can operate.”
The board plans to make a decision on the bylaw waiver at its next meeting Dec. 16, at 7 p.m., and will accept public comment on the matter via email at planningboard@townofconway.com until that meeting begins.
Chris Larabee can be reached at clarabee@recorder.com or 413-930-4081.