The Newport Economic Development Commission (NEDC) was awarded $2.518 million in mediation for two separate lawsuits filed following the relocation of a medical marijuana cultivator that was previously located in Newport.
The Arkansas Medical Marijuana Commission approved the transfer of Natural State Wellness’ licence to Good Day Farms in November 2020, followed by the transfer of location to Pine Bluff, according to Jon Chadwell, executive director of the Newport Economic Development Commission.
According to Chadwell, NEDC will receive the land it sold to Natural State for less than market value, as well as the building at the site. The assessed value of the land and building is approximately $1.475 million, and NEDC will receive $1 million in restitution costs, as well as all attorney and court filing fees.
This restitution includes staff hours used to develop the project, utilities that were provided free of charge to the building, and other associated costs. Chadwell stated that a lot of effort was put into obtaining easements from private property owners to allow the project to move forward, and that it was disappointing that not a single job was created in Newport despite all efforts.
“We got it figured out,” Chadwell said. “We reclaimed the building and the land.”
Natural State submitted its licence and location change paperwork after the Arkansas Medical Marijuana Commission published its agenda in November 2020, meaning no one from NEDC was aware of the proposed move and no one attended the meeting to oppose the changes, according to Chadwell. A formal request was made to the Arkansas Medical Marijuana Commission several months later to reverse the decision to relocate the facility, but it was denied.
In April 2021, NEDC, represented by attorney David Couch, filed a lawsuit. Couch filed another lawsuit in October 2021 for the Newport-Jackson County Industrial Development Bond Board to reclaim possession of the property sold to Natural State Wellness, including the building built on the property by Natural State Wellness.
The three main defendants in the lawsuits, NEDC, the current and former owners, began a mediation process on Wednesday (Feb. 22). Chadwell stated that a settlement was reached after nine hours.
“We feel vindicated to receive this settlement on behalf of Newport from Harvest Health and Good Day Farms,” Chadwell said. “In Newport, we have many exceptional businesses that are important partners in the community’s growth. However, when a business fails to meet its obligations, we feel obligated to take action on behalf of the community.”
Chadwell stated that he expects the settlement terms to be paid in full within the next 30 days. Once the property and building deeds have been transferred, the building must be assessed for repairs and updates. A greenhouse is part of the structure, and Chadwell said at least six businesses have inquired about its availability in the last year.
