South Side weed farm already facing real estate challenges

Two weeks after recreational marijuana became legal in Chicago, officials are pushing back on weed-related real estate.

On Tuesday, officials delayed a South Side developer’s effort to establish a marijuana farm near Pullman, advanced an amendment that would trigger a 90-day delay on dispensary applications if someone sought to ban cannabis sales in a precinct, and again delayed a vote on on-site cannabis consumption lounges at smoke shops, Block Club reported.

Ald. Michelle Harris (8th Ward) asked to defer development firm DL3’s zoning change request convert a warehouse into a weed cultivation center or craft growth facility to allow more time for community input.

The 31,000-square-foot site 1050 E. 95th St. in Burnside is listed for sale for just over $1 million with commercial brokerage Jameson. Situated on the site is a 14,000-square-foot building, nearly three times the 5,000 square foot limit of cultivation space allowed for craft grow facilities.

State Rep. Kelly Cassidy told Block Club that craft grow licenses are intended to allow more people to enter the cannabis industry.

As many as 40 craft growing licenses will be awarded across Illinois by the Department of Agriculture by July 1, and 60 additional licenses can be distributed by December 2021.

It’s unclear whether DL3 would lease the proposed indoor marijuana farm to a tenant or if it would sell it to a cannabis company.

Thirty-four dispensaries received approval to open on New Year’s Day, but six of them were unable to do so due to construction, permitting or other issues.

Chicago is expected to benefit from only $3.5 million in tax revenues from recreational marijuana in 2020 due to state legislation preventing municipalities from collecting taxes until next September. [Block Club] — Brianna Kelly