HUDSON – Temescal Wellness will no longer have to give a 3% flat rate of its gross annual sales to the town to cover a community impact fee.
This is the second change to community host agreements with marijuana dispensaries in recent months.
According to Executive Assistant Thomas Gregory, the fee was used to fund traffic control, police and fire protection and other services to aid the business.
During a Select Board meeting on Dec. 19, the board unanimously voted to authorize Gregory to approve an amended community host agreement, which would eliminate the 3% charge.
The community host agreement outlines the rules and responsibilities between the business and town.
According to the First Amended Community Host Benefit Agreement, Gov. Charlie Baker signed last summer a cannabis regulation law that prohibits municipalities from charging a marijuana business a community impact fee after the business’ eighth year in operation.
Instead of Temescal Wellness paying a community impact fee, the business will reimburse the town when it needs to utilize services such as traffic control, according to Gregory.
Select Board Chair Scott Duplisea said the town benefited from the community impact fee, but it now understands that the agreement must be “tailored” to follow the updated state regulations.
“I wish we could have kept it at what it was, but we are still getting some money from them,” Duplisea said.
He added, “We have gotten a decent amount of revenue from Temescal Wellness. Fortunately, both of the marijuana businesses we have have been fantastic partners and members of the town.”
Temescal Wellness is located at 252 Coolidge Street.
The recreational marijuana shop opened in 2019, though Hudson officials had pumped the brakes on the dispensary after they said Temescal Wellness didn’t provide a proper traffic management plan.
This Temescal Wellness is one of three in Massachusetts.
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