Massachusetts town pays nearly $800,0000 to settle cannabis fee lawsuits

The city of Pittsfield, Massachusetts, agreed to pay $786,625 to settle lawsuits brought by three cannabis retailers over community impact fees.

The settlements with Temescal Wellness, Berkshire Roots, and Bloom Brothers were approved by the Pittsfield City Council in a 10-1 vote, according to the Berkshire Eagle. Under the deals, Temescal will receive $360,375, Berkshire Roots $341,000, and Bloom Brothers $85,250.

The legal disputes centered on the municipality’s authority to impose fees on cannabis businesses under Massachusetts law. Pittsfield Mayor Peter Marchetti said that the settlement amounts were less than what the companies paid the city, but avoided potentially larger losses at trial.

“If we were to go to trial and lose, the conditions of that would be far greater than the monies that they owed us,” Marchetti told the Eagle.

The lawsuits alleged Pittsfield failed to justify the community impact fees it charged the cannabis companies under host community agreements. A 2022 state clarification also limited the fees municipalities could impose.

The settlements follow similar legal actions brought against other Massachusetts towns and cities by cannabis companies seeking refunds of previously paid fees. Boston at one point returned nearly $3 million in fees to local cannabis businesses, while the town of Uxbridge paid $1.2 million to settle with one retailer.