NILES TOWNSHIP, MI — Indecisive Niles Township voters have spoken. The response is a lawsuit — with potentially more to come.
More than 20 marijuana businesses announced plans to open in the community of nearly 15,000 residents after elected officials in April passed an ordinance allowing for an unlimited number of marijuana shops in the township.
Niles Township’s location along the Indiana border makes it highly desirable, due to the potential for significant sales to out-of-state customers.
Marijuana businesses began purchasing property, submitting applications and making plans. Growing concerns over the influx spurred a voter-led ballot initiative to ban all marijuana businesses in the township.
In November, 58% of Niles Township voters cast ballots to reverse course. They passed the ban.
The community has flip-flopped multiple times related to marijuana licensing.
In 2019, Niles Township officials passed an ordinance banning marijuana business. In 2022, voters rejected a ballot initiative to overturn that ban. In November 2024, about 52% of voters passed a ballot initiative to allow marijuana. The passage required the township issue a minimum of four retailer licenses.
With the ban in place, some businesses claim they’ve unfairly and illegally lost their investments.
Haze, a company that had plans to open two Niles Township locations, filed a lawsuit against the township in the U.S. District Court for the Western District of Michigan on Friday, Jan. 16.
The Haze lawsuit claims the township granted its two locations “conditional licenses” in June.
“As long as Haze received a state operating license and certificate occupancy within one year, the Township was required to grant an operating license,” the lawsuit said.
The business completed the first step in the state licensing process by obtaining a “pre-qualification” and spent over $600,000 on property deposits, construction, application and other state and local fees.
After the voter referendum passed in November, the township issued a letter to all applicants notifying them that the application process had been halted.
“The township must respect the will of the voters … ” the letter said. “This prohibition on marijuana establishments shall remain in effect unless a future vote of the people demand otherwise.”
Haze attorneys contend the township hasn’t offered any “meaningful” and legally required opportunity to contest the decision.
The lawsuit said the township violated due process rights by interfering with the company’s property rights without a rational connection to public health, safety or welfare.
Attorney Robert E. Thrall, who represents the township, said on Friday that officials had not been served the lawsuit and he was not prepared to comment.
Haze isn’t alone.
Following the November election, MLive spoke with multiple property owners whose plans to sell land and buildings to marijuana businesses fell apart.
James Jorgenson expected to retire following the sale of the motorcycle shop he’s owned for nearly 20 years, and Mark Godsey planned the same after entering a sales agreement with a pot shop for his bowling alley.
With a marijuana ban in place, both men said there is little demand for their properties.
“I had a purchase agreement, (the township) gave out building permits,” Godsey said. “If you can just get a petition and get it put back on the ballot and voted down, I’d be a little nervous in other towns that have pot stores already built.”
