City agrees to begin negotiations with new medical marijuana grower

Published 8:35 am Wednesday, June 27, 2018

NILES — A medical marijuana grow operation that has continued to ask for city leaders to allow them to establish their business in Niles got some positive news Monday night.

City council members voted 6-1, agreeing to start negotiations with HDS Investments to purchase a vacant lot at Lake and 13th streets. The sale is contingent upon the company receiving licensure for medical marijuana and following through with plans to build a facility. Georgia Boggs was the only council member to vote “no” on the motion. Council member Daniel VandenHeede did not cast a vote, because he was absent Monday night. 

While the issue was not on the agenda, council member John DiCostanzo called upon city leaders to give the company a chance at growing their business in Niles.

DiCostanzo said he was impressed by the company’s persistence and enthusiasm for establishing their business in Niles.

“I want to try and continue to give them the opportunity to move forward on the project,” DiCostanzo said.

HDS Investments has proposed investing up to a $1 million to create their facility. The company is led by three principles: Mike Heskett, Jeff Durrell and Robert Seske. HDS will grow medical marijuana to provide to processors and dispensers. The company will sell about 80 percent of its  products to Lion Labs, a medical processing facility. Company officials expect about 25 jobs to be created at the facility. HDS has offered to purchase the vacant property for $30,001, according to Heskett.

Since taking an interest in the vacant property about six months ago, Heskett and Durrell have been present at several city council meetings, usually taking the time to speak during public comment to ask for city approval on the project. Monday night was no different.

During the public comment of the meeting, Heskett and Durrell both addressed council members and the crowd.

“We are trying to do it so we can treat autism, seizures, arthritis,” Durrell said. “What we want to do is treat and help.”

Heskett also spoke.

“I’m just here to say, I’m glad to be here. We look forward to doing business with you,” Heskett said.

During a city council meeting in late May, city leaders voted to pass a moratorium on accepting medical marijuana licenses through Nov. 17. HDS officials had attended the meeting and said afterwards that they could consider taking their business elsewhere, though they would continue to work with the city to begin the negotiation process.

With the negotiation process now in place, Heskett said the moratorium will give the company time to complete other aspects of the process.

Most city council members seemed on board with the motion, and there was not much discussion prior to their votes.

Council member Gretchen Bertschy did question whether the city might be putting the cart before the horse with the motion.

“So, the sale can go through before the licensing?” Bertschy said.

But City Administrator Ric Huff said the sale was contingent upon HDS receiving a license. If the motion violates any city ordinances, it would be discontinued. Huff said zero people had asked about purchasing the property in the last year. 

For their part, Heskett said HDS has already applied to the state to receive their medical marijuana license.

“We are clear,” Heskett said. “This facility will happen. The day we get the license, we are going to write the city a check and start breaking ground.”

Heskett said having a location locked down will be beneficial to the application process. He said the company will next turn its attention to the architectural aspects of the proposal.

Overall, Heskett said Monday night’s motion by city leaders was a vote of confidence in the company.

“We have been waiting for this,” Heskett said. “This is the second greatest day, other than my daughter being born.”