by Nick Wognum

A packed house at a city of Babbitt planning commission hearing isn’t commonplace. But the proposed location of a cannabis plant created plenty of community concern.

Green Mining Company had proposed buying three lots from the city west of the Ely Area Credit Union because they were zoned to what was required by St. Louis County.

At the public hearing at 9 a.m. on May 1, planning commission member Jim Lassi apologized for the meeting being held in the morning. 

Lassi welcomed those present and explained the zoning of the area in question including that a conditional use permit would be needed which requires public input and approval by the city council. 

“When the city council decides on something like this, their main thing is to consider, will this business be detrimental to this the health, safety, or welfare, of the public adjoining businesses or anything else,” said Lassi.

Richard Stuart, Chad Davis and Dean Harden were present for Green Mining.  

“We’re well aware of the conversations that take place on social media and some feedback and pushback that may have been coming your way. And so we want to make sure that we are crystal clear in terms of what we’re doing. And I just wanted to highlight a couple of key moments here,” said Stuart. 

“And some of those are our commitment to youth programs. So 2% of our net revenue that’s generated goes directly back into the youth programs here in Babbitt, and 2% goes directly into the youth programs in Ely. 

“Our initial plan will bring nine to 12 full-time jobs. These are livable wage jobs, starting salary of $41,600 for the 7.5% cost of living adjustment annually. As a staff member, when you’re on our team for five years, your base salary is $100,000. 

“There’s been some questions regarding visual aesthetics. Everything that we do will be to appeal to attract new businesses to the commerce park while working with our architects and abiding by all industrial district covenants. 

“In terms of why we chose Babbitt, it’s the light industrial  zone parcels in the Commerce Center. It’s a really unique opportunity for us to bring a manufacturing business to Babbitt,” said Stuart. 

He said Green Mining will use  state of the art technology that eliminates and neutralizes all odors. This would be used in both the greenhouses and the manufacturing facility. 

“It’s a sizable capital investment, but that eliminates the smell. So and we have plenty of case studies that we can share with the team afterwards,” said Stuart. 

He said city water they use will be run through reverse osmosis filtering. 

A letter from Rep. Roger Skraba was read into the record. While Skraba’s letter endorsed the project, he said after the meeting he was not aware of the proposed location and did not support the plant being built there. 

Billie Rouse was one of the 17 speakers and was in opposition to the proposal. She said some of her questions were answered but asked about biomass including how unused plant products would be disposed of. 

She said as a business owner she was concerned about light pollution and the area being surrounded by a “big old honking fence.” Rouse said she questioned if this was the best use of the space. 

Don Negley, who owns the property to the east, said he wasn’t opposed to the business but the proximity to the school and parks. 

He said he is concerned about the lack of housing in the area. 

“I feel pretty strongly hand in hand with any business that comes in to take a look at locating here, we definitely need to get this housing situation figured out,” said Negley.  

He asked if the company would grow cannabis year-round. The answer was no. 

“I’d like to thank Green Wing for the opportunity for the community. I think we can come up with a resolution,” said Negley. 

Karen Applequist said she uses medical marijuana for nausea from cancer and said there are other family members who use marijuana products for medical uses. 

“I think a lot of people should look more into the medical side of this, and what they’re doing. You don’t have to smoke marijuana. I don’t know how many grow rooms are probably in this town right now. 

“I doubt your neighbors smell them. But unless you burn the place down, I don’t think there’s going to be much smell to the situation. And why do we run businesses out of town here all the time? We need jobs,” said Applequist. 

 Bernice Norregaard said the location is a poor location and questioned the water usage as well as reclamation when the business is no longer in operation. 

Jim Zupancich said he’s also against the proposed location. He said there is a perception involving a business like “Dickheads” in Aurora that sells bath salts and other materials related to drug use. He said that perception can impact a community. 

“If I had a family of young children, I’d say, ‘I’m not living in Aurora, let’s find another town.’ It’s going to be similar to the same when you come to Babbitt.” 

He said Babbitt has 105 square miles of land and there should be a better location.  

“What’s going to happen here when you build that if they build that plant, that downtown area, that’s your hub, your community. Babbitt’s going to be known as the marijuana growing place in the Iron Range,” said Zupancich. “Can’t we find another place to put this?” 

“The people that have all the land around this don’t want it. They don’t want it near them. I believe our land values are going to decrease because this plant is in our community,” said Zupancich. 

Merle Vandervest said he agreed with Zupancich 

 “I’d love to see him come into town, the jobs, the revenue for the city, and stuff. But that’s no place to put it in the middle of town.” 

Bud Griffin said he questioned the business model and the lack of growing time. 

“I feel they’re leaving about 60% of their profits by only doing part of the year,” said Griffin. “And I don’t think it should be right there.” 

Michael Jacoas said the business would generate $500,000 in payroll and the lots had been for sale for over 20 years. He said if this was a craft brewery, there wouldn’t be needed. 

“They talked about 105 miles of Babbitt. What’s the infrastructure? Where’s the water? Where’s the sewer? You don’t have it. Half of your 105 miles is underwater. Why not give them a chance?” 

Richard Pierce said Green Mining is an agricultural business. 

“Ag industry has lots of working pieces. Ag industry grows. Ag industry does not stay one footprint. It expands. And anybody that’s involved in ag that doesn’t plan for expansion has cut themselves extremely short. So what I’d like to suggest is that this group of people that are trying to bring forward their plan, look to the outskirts of Babbitt.” 

 “I recommend that these folks look a little broader in their research, and there is areas where water is available, septic is available and power is available on ag property.” 

Leroy Aho said he is totally opposed to the project. 

“I read it in the paper. It just blows my mind that somebody would do something like this in our community.” 

He said he has seen the impact of having family members use marijuana and other drugs. 

“There so many people in our community that have died or almost died from their overdose of drugs,” said Aho. “And marijuana, they put fentanyl in it, they can be dead on the spot.” 

Aho said he has concerns over the impact to the police department as well. 

“It’s going to cost our community a lot more money in law enforcement.” 

Ben Morgan said, “I am against any kind of marijuana cultivation and manufacturing facility. I’m against it first and foremost, based on what God would say, that might sound strange to people, but that’s what I feel I have the position to say. The scriptures are clear of the increase of wickedness in these end times, and I believe this will increase it. 

“I appreciate so much that they said they were going to support the youth, a certain percentage of all the income, and there will be a lot of income from it. And the percentage will go towards the youth, and that will be very much needed in my estimation and based on my experience. So I appreciate that. 

“If we say it’s okay to grow and manufacture marijuana slash cannabis in Babbitt, there will be problems.. We don’t want to say it’s okay. We need to trust in God, trust in God for bigger and better things, for our town, for our community, for our families.” 

Shyann Cersine said she began smoking marijuana when she was 12 years old and did so for two years. She said she quit in ninth grade but had some friends who died from overdosing on drugs. 

Cersine said she moved to Babbitt 10 years ago. She said she has seen the benefits of medical marijuana.  

“I am not against marijuana at all. I do think that it needs to stay out of the hands of minors at all costs. 

“I think it’s going to be a great industry. It is a great industry, and I think it’s going to be a great opportunity for some people to have  some large salaries, some large profits, and I’m cool with that. 

But I do agree that when I walk my five-year-old son down that road in a couple of years, whenever it’s up, he’s going to say, “What’s in that greenhouse?’ 

“Let’s try to keep it out of the front center of this town. I love this town, despite my struggles here, and I do appreciate you guys listening to me.” 

Rob Palkovich said the issue of driving by a marijuana growing facility is the same as driving past a bar. 

“When it comes to alcohol versus weed, everybody here is okay with alcohol for some reason.” 

Nick Allen said he’s lived in the area for 15 years, and struggled to find gainful employment. 

“I hope that we can take the weed part of this out of the equation and look at the business and the revenue that this could create.” 

Joanne Briggs said, “Thank you for this opportunity, and thank you that you’re gonna give back to the community for the youth, because we’re gonna need detox and counseling centers and drug rehabilitation centers for those kids. It’s going to be on you. And Ben Morgan, thank you for proclaiming God’s word because he’s right.” 

Fran Ortell said she worked 28 years on the police department in Silver Bay, and I worked 18 years on the ambulance rescue squad in Silver Bay. 

“I can tell you from experience, moms and dads, grandparents, great-grandparents, you don’t want more trouble in this town. You have such a beautiful little town here. You want to preserve it as much as possible. Go by what God’s book says. 

“I’ve experienced with the drug use, and the druggies started out with marijuana. Most of them did. That was the story of the whole thing. They started out with something that seemed so simple, just nothing, but it graduates. It took one of our rescue squad calls one night for a young, beautiful girl, maybe 14, 15. It took six of our crew to hold her down in the effects of this drug, in her body. 

“It’s not a pretty sight, people. It’s people on rescue and fire and police and stuff like this, they can write a book on what it’s all about.” 

Tony Chamberlin was the last to speak from the public and said he thinks there are some misconceptions. 

“The fact is that the state of Minnesota legalized marijuana cannabis products, they’re gonna be here one way or the other. It doesn’t matter where they come from. So this facility that they’re proposing to put in Babbitt is not a retail facility. 

“It does not change the availability to end users in this community whatsoever. There is no availability to an end user in this community. What it does do is it provides us with a huge cash influx of what’s going to be here. 

Dispensaries are a completely separate issue altogether. Now, I don’t know that this is the exact location that we should put this. I think the city should study other opportunities of location. 

“But as a whole, the only thing that affects this community is the money that it’s bringing in the job set is providing. There is no change to end user availability of cannabis products in that.” 

Stuart thanked people for participating and said he reads the bible every morning and  “when we talk about nine to 12 jobs, that’s just the beginning. We need to be the future focused and make sure that we’re looking at the forest for the trees.” 

 Stuart said their business is modeled after a company in Michigan that started five years ago and employs 40 people now. 

 “Every single staff member has either purchased a home in that community or has built a brand new home in that community. So, just to make sure we’re talking about that, the tax revenue alone will be a significant increase for the city. 

When it comes to chemicals and reclamation, this is all organic. That is not happening. We have very strict guidelines that we have to adhere to from the office of cannabis management. 

“I mentioned that for just the application to get our preliminary license was 110 pages of in-depth focus, to security, to fire, to police, the diversion, to how we’re going to grow, how we’re going to manufacture. One of the pieces about growing…our growing window is only from April 21st to October 21st. We have two full harvests planned for that season. It’s too cold here in the winter. I live in the community. I understand that. 

“Our manufacturing facility will run year-round. The growth facility is only April 21st to October 21st. 

When it comes to an extraction lab. No, that’s not the plan. This  is a biomass production facility. Biomass comes in one end, outside the other end. It comes compliant with a state label product that gets sold at our dispensary in Ely.” 

Stuart said they are limited by the state on how much they can grow and manufacture.  

“This is the most highly regulated industry in our country, period. When it comes to, you know, other available lands, those aren’t zoned light industrial. 

“For us to make this financially feasible, it has to have a sooner than later, because we’re one of the first in the state to get our preliminary license. Why were we awarded that license, you might ask? It’s not that we have big dollars. It’s because we’re social equity applicants. 

“What does that mean? It means our median household income in this area. It is below 80% of the median household income in the state. We will be competing against the sovereign nations. If we don’t get this up and running sooner than later,  this industry will not be coming to the Iron Range, because the tribal nations will ensure that they have everything.” 

The issue came up at Tuesday’s city council meeting. A 40 acre parcel the city owns south of the golf course was discussed, however there aren’t city utilities so the developer would have to put in their own well and septic system. 

The council discussed having a joint meeting with the planning commission on Tuesday to discuss options. However, a time was not set at the meeting.