DuPage County Approves Cannabis Zoning Changes

DuPage County decided it’s time to check out the buzz surrounding cannabis by loosening its real estate regulations.

Three years after Illinois legalized marijuana use for adults 21 and older, the county reserved course and changed its zoning laws to allow recreational sales, the Daily Herald reported.

The county had previously banned all cultivation centers, growers and other cannabis businesses in unincorporated areas of the county.

In the three years since Illinois legalized the sale of recreational marijuana, 17 towns in the county have voted to allow cannabis sales. Some are also exploring adjustments to laws to allow on-site consumption of cannabis at bars and restaurants.

The county’s ordinance lets recreational cannabis shops open near major roadways and at least 1,500 feet from another dispensary and schools. Cultivation centers must be at least 2,500 feet from schools. Three Republicans on the board voted against the zoning changes.

Illinois has made 185 dispensary licenses available across the state. The Chicago Metropolitan Area — which includes DuPage County — is eligible for 110 of those licenses. It’s unclear how many are still available, though, with many dispensaries already operating in the Chicago area.

A recent sale and listings of commercial buildings occupied by cannabis businesses in the Chicago area demonstrate the value such tenants can bring to property owners. Local real estate investor Centrum, for instance, completed a $14 million sale in July of a River North building at 60 West Superior Street occupied by a dispensary branded by Verilife, a deal that more than tripled the seller’s 2017 acquisition cost.

The state’s cannabis market isn’t without its challenges, though. New York-based Thor Equities filed suit against a Chicago marijuana tenant in federal court over alleged unpaid rent. The tenant, MedMen, is trying to keep Thor’s lawsuit from moving into a state court, arguing that marijuana’s federally illegal status means its landlord can’t enforce the lease.

The lawsuit filed by MedMen highlights the points of tension between real estate owners and occupiers as the cannabis industry still operates within conflicting state and federal regulations.