It would be helpful to mention the drawbacks, that Heathens could judge for themselves the opportunity (or not). For instance, it is very possible, that the town is leaving a lot of money on the table with the RFP that was not very well publicized. Many of the towns constituents were not even aware it was listed.
The cost to build that building from scratch is upwards of $3 million. This obviously is a $2.75 million savings to the potential buyer before some much needed upgrades. So let’s call it an even $2 million. That’s quite a bargain.
It is further very possible that were the RFP to list the fact that the school could be permitted as a cultivation facility, complete with host agreement, there might have been multiple bidders with much larger offers.
The Massachusetts market is exploding. It is hard to think a larger premium can’t be had. It is worth noting that, according to RFP rules, the town might have jumped the gun, listing the RFP before having the authority from the town’s constituents.
Further to this, it is troubling to some of us, that Carnegie Arch had what can be considered very valuable information, which was not contained in the RFP. Namely, that the school could very well be permitted, with Host Agreements, for Cannabis Cultivation.
RFPs are intended to be transparent and fair, that the market makes the price point. It is not very clear that has happened here. Putting all that aside, some of the revenue assumptions ($175,000) seem questionable, given the state of more mature cannabis markets like Oregon and Colorado, where wholesale cannabis is less than $1,000 a pound.
CCC market protections will fail to support pricing when, not if, the federal government legitimizes cannabis for the revenue it sorely needs to start addressing the skyrocketing debt. At which point all the economics for cannabis will change drastically to the downside. The market will corporatize, and most of it will be grown in greenhouses on cheap rural farmland in markets with lower costs of living, and shipped around the country.
The town should be doing everything it can to get as much as possible for the building now, if Heathens approve the board to sell it. Why should the town’s taxpayers be gambling on the future cannabis market?
For the record, this editorial should be corrected by the writer on this fact: The town is not voting to sell the school to Carnegie Arch. The town is voting to give permission to the Selectmen to sell or lease the school.
One reason the vote failed the first time may be because there is some mistrust that the Selectman have the town’s constituent’s best interest in mind. Perhaps the board can convince voters otherwise by telling the town’s people it will submit a proper and transparent and well publicized RFP. And perhaps the town will vote to keep it.
Ed Whitaker is a resident of Heath.