Menominee City Hall Faces Mounting Financial Risk in Cannabis Dispensary Lawsuit
The City of Menominee, Michigan is facing a potentially multi-million dollar lawsuit from PUFF Cannabis Company due to delays in granting the dispensary a license to operate. Despite being fully constructed and ready to open as July, PUFF Cannabis has been unable to begin business, citing issues with city licensing.
PUFF Cannabis initially filed suit in September, later amending the complaint in October to include a claim of constitutional violation. The company argues the city approved their license a year ago and is legally obligated to issue it. For each day the dispensary remains closed, the potential damages owed to PUFF Cannabis continue to increase.
The dispute centers around a change in city regulations. While an email from December 2024 indicated PUFF Cannabis could be approved for a license – at a time when there was no limit on dispensary numbers – the city council later voted in august to cap the number of dispensaries at nine.Currently, eight dispensaries are operating.
A settlement agreement exists between the city and Highwire farms, granting them priority for the ninth and final license. However, PUFF Cannabis contends thay should be granted the license as they received approval before the cap was implemented and are fully prepared to open, unlike Highwire Farms.
City Manager Brett Botbyl acknowledges a permanent injunction is in place, preventing the city from taking further action regarding marijuana licenses and applicants.
Menominee Mayor Casey Hoffman is seeking a resolution to avoid meaningful financial repercussions. The city has two potential paths forward: reaching a settlement with PUFF Cannabis or passing a “lawsuit prevention amendment.” This amendment would allow any business that invested in property or licensing paperwork before the August cap was enacted to open.
Mayor Hoffman has directed the city’s legal counsel to draft a settlement agreement with PUFF Cannabis and is prepared to call an emergency city council meeting onc the draft is complete. Both the Mayor and City manager Botbyl expressed a desire to resolve the issue and avoid costly litigation, prioritizing the safety and security of the community.
