NILES — Two medical marijuana businesses seeking to open their doors in Niles received preliminary approval from the Licensing and Regulatory Affairs Board Thursday.

Grow operations HDS Investments and MichiCann cleared the background and financial checks, granting them the approval.

Jeff Durrell, a partner for HDS Investments, said the business hopes to break ground in the next six to eight weeks. Both HDS and MichiCann mark the first of their kind to receive the approval in Niles, Durrell said. The operations will both need to obtain licenses from the state after a building inspection. However, Thursday’s approval was significant.

“Pre-approval sets everything in motion,” Durrell said. “The preliminary [completes a] full background and financial [check]l, which is the biggest hurdle. That was a huge weight [off our shoulders] because you just don’t know what is going to happen. We have seen a lot of places get turned down, so you never know.”

HDS Investments has proposed building a 1,500-plant grow operation at the corner of 13th and Lake streets. The business expects to invest $1 million in the creation of a new building. Once their building receives approval, HDS will be eligible for a Class C license.   

MichiCann was approved by the city for a Class A Grow license in December 2017. The business is slated to open in Industrial Park.

Next, Durrell said the company would need to finish paperwork with the city of Niles and officially purchase the property, after which Durrell hopes to be able to break ground within the next six to eight weeks. By the end of the year, he said he expects the business will begin growing plants.

In addition to Durrell, HDS is comprised of fellow partners Michael Heskett and Robert Seske. Last summer, the city council members voted 6 to 1 to begin negotiating with HDS about the purchase of the vacant lot on 13th and Lake streets.

The sale is contingent upon the company receiving licensure for medical marijuana and following through with plans to build a facility.

Durrell expressed gratitude to the city of Niles and its leaders for working with them.

“We are looking forward to working with the city of Niles,” Durrell said. “Niles has been great to us. They were our first choice flat out.”