Member Blog: Building A Medical Cannabis Dispensary During The COVID-19 Pandemic

by David Fettner, Managing Partner at Grow America Builders

In late January 2020, Grow America Builders started construction on a new medical cannabis dispensary in Elizabeth, New Jersey, just across the river from Manhattan. It was scheduled to be a 12-week project. And then COVID-19 happened.

Every construction project has its own challenges and problems, but we never had to complete a project under those conditions.

The coronavirus pandemic hit the area fast and furious. Cases doubled by the day, stay at home mandates were put into effect, and there we were, in the middle of construction of a dispensary with a strict state-imposed deadline.

Most cannabis companies are given a state-imposed deadline to complete their dispensary or risk losing the license. As the chaos surrounding the virus was intensifying, the state of New Jersey was silent on whether or not there would be a time extension. We had no choice but to push ahead.

Hurdles, Speed Bumps, and Roadblocks

The first hurdle we faced was abiding by the new regulations. The two primary directives were that all workers must wear masks, and all entrances had to have a washing station with hot water or hand sanitizer. Every construction contractor has masks, but the second part was more of a challenge. As everyone remembers, hand sanitizer was a rare commodity in those first few weeks of COVID-19. If you had a jug of hand sanitizer you may as well have had a jug of gold bullion. Our project manager used the first of many favors and begged our plumber to come out on a Sunday to plumb a temporary sink so that we’d be operational by Monday morning.

The next problem was getting workers to the job site. Immediately, there was confusion as to who was allowed to work and who wasn’t. Some cities allowed essential work to continue, but others shut everything down except for medical personnel. Our guys were getting pulled over by law enforcement, and told that unless they were working at a hospital they would have to turn back. It was very confusing; even though construction was allowed in Elizabeth, it might not have been allowed in a neighboring town.

We lost subcontractors left and right. We assured our guys that construction was allowed on our project, but they didn’t want to risk getting continually pulled over. And then there were those who understandably didn’t want to endanger their health. The situation forced us to make modifications on the fly. We plowed ahead, finding alternate contractors and paying extra just to get bodies to the job.

It was about a month out from our deadline when we hit the biggest speed bump. One of the more critical elements of the project was a wall of interior glass separating the reception area from the sales counter. We wouldn’t get the occupancy permit without it. As soon as we were ready for the glass wall, we were told that eight members of the installation crew were out with COVID-19. They had been working on another job at which they were exposed to a bricklayer who had the disease. Regardless, the glass wasn’t even ready because the shop had closed down.

In late March, as we were frantically dealing with the glass crisis, we received an email from the city that stated all construction was to immediately cease and the building department was closed indefinitely. Internally, at Grow America Builders, this was henceforth known as “The Email.”

We had no indication that this was coming, despite the fact we had just had an inspection. The inspector probably didn’t know himself. We had about three weeks of construction remaining and roughly three weeks until the deadline. This left us with no room for error. We couldn’t afford a stoppage. We were spinning our wheels; how could we convince the city to let us finish our project when they’d shut down all other construction? It wasn’t long before the state released a list of “essential businesses” that could remain open. We scoured that list until we found what we were looking for: “medicinal cannabis dispensary.”

Were We Essential?

In a recent article on Marketwatch.com, Randal Meyer, executive director of the Global Alliance for Cannabis Commerce, recognized this and said, “There is a good reason for cannabis [retailers] to be treated like pharmacies. The basis is medical.” In the same article, it was reported that California Gov. Gavin Newsom decided that dispensaries should be treated something like pharmacies. Every governor in a medically legal state followed suit.

As long-time advocates of cannabis, we were always on the side of “legalize it.” But since working in the cannabis industry, we’ve seen the cancer patients, the veterans suffering with PTSD and the epileptics who literally depend on cannabis on a daily basis. It wasn’t news to us that medicinal cannabis would be deemed essential. It was good to know that this now seemed to be the consensus.

We started making calls to the building department and arguing to anyone who would listen that if a medical cannabis dispensary is considered essential, then the construction of one should be as well. The sooner we could get the dispensary built; the sooner people could have access to their medicine.

Finish Line

About 48 hours later, we received verbal approval to continue working, and about a week after that the building department opened back up with limited hours. At this point we had a good routine established; we kept the electricians away from the plumbers, the plumbers away from the millworkers and the painters only worked nights and weekends. Glass was finally being fabricated and our final inspection was scheduled. We were ready.

On the morning of final inspections, our one item of concern was that the inspector wouldn’t be happy about walking around the glass installers who were still finishing up. The issue became moot because the inspector never showed up. He had fallen ill the night before our final inspection, and since he was apparently the only inspector who could pass us for occupancy, we had to wait until he could return to work.

Nobody knew when that would be. What we did know was that the state inspector was scheduled for the following day. This was new territory; we never had a state inspector come out for their inspection before receiving city inspections. To our relief, the state inspector still did their inspection and the dispensary received state approval prior to receiving occupancy from the city. About 10 days later, the building inspector came out and approved us for occupancy, and days later, the dispensary was open for business.

There were a million little things that we usually take for granted that were made that much more challenging under the shadow of COVID-19. It gives us great pride to know that we built that medical dispensary amidst the pandemic in the hardest-hit part of the country and that patients are finding it easier to gain relief in Elizabeth, NJ.

David Fettner is a managing partner of Grow America Builders, a national design-build construction company focused solely on the cannabis industry. Along with his partner, Mike Kaulentis, Grow America brings over twenty years of versatile construction experience, offering customers an end to end experience from concept through architecture, design and turnkey construction.

Member Blog: Weighing the Options for Cannabis Facility Construction

by Albert Marks, Cannabis Facility Construction

As more investors consider the cannabis industry as a growth market, the need for cannabis cultivation facilities, processing centers and dispensaries is projected to rise to keep pace with demand.

A report from New Frontier Data projects that by 2020 the legal cannabis market will create more than a quarter-of-a-million jobs. These are more than the jobs expected to be created from manufacturing, utilities or even the U.S. government, according to the Bureau of Labor Statistics.

Forbes magazine estimates that medical marijuana sales are projected to grow to $13.3 billion by 2020. With this growth will be the need for quicker, cost effective construction with investors likely to consider the remodeling option.

There is value in remodeling the interior design of existing abandoned or non-productive buildings into state-of-the-art cannabis facilities that can be brought to life quickly and on-budget so that the facility becomes a new source of jobs and tax revenue for the area. This is a popular option for investors looking to tap into the burgeoning cannabis market.

Cannabis businesses have to keep track of many moving pieces in the name of compliance, growth and sustainability. Industry experts are seeing value in integrating processing and cultivation at the same site, which can open the door for better quality control. A well-designed cannabis process goes far beyond just extraction; it overlaps heavily with cultivation on the front-end and product development on the back-end.

Security is a growing issue for cannabis dispensaries, cultivation and processing facilities. According to Security Sales & Integration magazine: “Once the products reach the warehouse or dispensary shelves cannabis companies rely on advanced security systems including visual and audio surveillance to protect their valuables and even their license. In order to prevent diversion of product, most state cannabis regulations require growers, storage facilities, processors and dispensaries to have advanced video security systems.”

Cannabis facility building contractors are charged with integrating top level security measures into their renovation. This is not only relevant to cultivation facilities, but also processing facilities and dispensaries. This builds confidence with clients and investors.

When building a cannabis cultivation facility, it is critical to understand that local codes are constantly changing as local building and fire departments try to keep pace with the rapid rate of changes in the industry. Rather than try to wade through these regulations, it is important to consult with a contractor who is experienced in the industry and is current with the latest changes.

Here are a few examples of buildings remodeled into high end cannabis facilities:

CFC renovated a 5,200 square-foot dispensary in Morris, Illinois that evokes old world charm, including a bar that originally was constructed in the Anheuser-Busch pavilion at the 1893 Chicago World’s Fair. The dispensary was originally the Rockwell Inn.

According to Mitch Kahn, CEO and founder of Grassroots, a national leader in medicinal cannabis, “It really is just a neat building with character that we wanted to keep, from the tin ceiling to the bar that’s over 100 years old, and retrofit it to our purposes. We saw the promise of remodeling an old building and turning it into a modern facility.”

A remodeled 40,000 square-foot cultivation facility in Illinois that was formerly a roller skate manufacturing facility. The facility was positioned in an Enterprise Zone that saved the dispensary owner more than $300,000.

Investors looking to build cultivation, processing and dispensary facilities, particularly in controlling construction costs, should:

Know there is an art and a science to converting raw materials of cannabis and finished products so any construction must meet all state regulations and local fire and safety codes.
Find a partner that can manage security infrastructure and planning as well as permitting and compliance support. It is critical to balance safety and customer-engagement.
Hire general contractors that will work on a fixed sum in lieu of a percentage of construction. This is especially important when it comes to a partner who will closely watch trade contractors to ensure they provide the best possible solutions, taking into account time and money.
Work with a partner that will watch their back from a relationship standpoint, not just the transaction.

Albert Marks is Client Relations Manager for Cannabis Facility Construction based in Northbrook, Illinois. Albert currently works with clients in three states, including Illinois, Wisconsin, and Massachusetts. Marks draws on his extensive knowledge of social media and digital marketing. He oversees the company’s blog, LinkedIn, Facebook, Instagram, and Twitter profiles. Marks is trained in using the SalesNexus CRM software, which he has used to make connections while working with clients, industry partners and trade partners in the residential, commercial, retail, restaurant, exterior and cannabis verticals.