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Pot Companies Say They'll Be Ruined Unless Detroit Facility Opens

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Four cannabis companies have urged a Michigan federal court to prohibit the city of Detroit from taking any action that would impede their $15 million marijuana processing facility from opening, saying they are "in immediate danger of financial ruin" unless they operate the site as planned.

The companies claim they spent a considerable sum on the facility's build-out based on promises the city made when it issued special land use permits allowing for the processing and transportation of marijuana at the location. Detroit's decision to rescind approval, after it learned how close the facility would be to a school, is a clear violation of the Fourteenth Amendment's due process clause, according to the companies' motion filed on Thursday,

The motion asks the Michigan federal court to issue a preliminary injunction order that would allow the companies — Cannabis Professional Design LLC, MB City Transportation LLC, HZ Detroit Holdings 1 LLC and HZ Detroit Holdings 2 — to open and operate their facility.

While the "real value" of the build-out is approximately $15 million, the companies specifically point to receipts and loans showing they've spent nearly $1.89 million, saying that sum is all it would take to "cause them financial ruin," the filing said.


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