Local cannabis entrepreneurs discussed their business plans with the Haines Borough Assembly Monday and addressed local objections to their permit applications.

Depending on the state’s Marijuana Control Board approval, the borough assembly could review five marijuana industry permits in the coming months.

Haines government officials haven’t created any regulations for the local marijuana industry since cannabis was legalized in Alaska in early 2015. The current assembly is considering an excise tax on cultivation production in an amount of $5 an ounce and has directed the Haines Borough Planning Commission to look at zoning issues related to the marijuana industry.

Although not specifically addressed in Haines Borough code, marijuana cultivation facilities fall under “crop production,” defined in code as “a residential use involving the raising of any vegetation for intended profit or personal use.”

Assembly members Heather Lende and Ron Jackson both thought marijuana cultivation lies outside of the current definition of crop production.

Jackson cited concerns about the odor associated with growing marijuana, and the state-required security infrastructure such as fencing and lighting.

“That seems like there’s a high risk for something going on there. Otherwise it wouldn’t be there and that’s not a patch of broccoli,” Jackson said.

Two Haines retail permits and three cultivation permits are currently in the state’s review process. Shawn McNamara, doing business as Alaska Mountain Growers, applied for retail and cultivation licenses.

Several Letnikof Estates homeowners wrote letters of objection to the Marijuana Control Board and the Haines Borough regarding McNamara’s proposed cultivation facility at the entrance of the subdivision.

The objections say Letnikof subdivision’s covenants, conditions and restrictions, similar to rules governed by a homeowner’s association, prohibit commercial enterprises.

Under its permitted uses, the restrictions state all lots in the subdivision are “Residential Lots for residential use only.” Any other activities must be approved by the subdivision’s association.

Other objections include concerns about smell, waste drainage into a nearby salmon spawning stream and decreased property values.

McNamara’s business partner Frank Clark said they plan to reduce the size of the cultivation facility to conform with local Mud Bay zoning requirements and that waste water would be disposed of offsite.

Clark also said he wanted to meet with concerned neighbors and indicated they would move the cultivation facility elsewhere if an agreement couldn’t be reached.

“We’re not going to litigate this at the end. So if we can’t honestly come to agreement on things in good faith, then we’ll probably do it elsewhere,” Clark said.

Longtime resident Carol Waldo, doing business as Glacier Bay Farms, applied for Haines’ first marijuana cultivation license in April and a retail license in early May.

Glacier Bay Farms manager Jason Adams responded to a general concern regarding public use and underage consumption of marijuana. Adams said state law prohibits smoking marijuana in public spaces and his business would never sell to anyone under the age of 21 years old, the legal age of consumption.

“Both these matters are for law enforcement,” Adams said. “The community tells us where people can use it or not.”

He added that state law regulating retail marijuana sale to minors is similar to alcohol.

“If someone has a fake ID or if you feel like they’re inebriated or on intoxicants or on other things and they’re not right, then you’re supposed to hold the ID, call the police or refuse service,” Adams said. “Same with a liquor store. It’s exactly the same.”

Assembly members Tom Morphet, Tresham Gregg and Sean Maidy said most of the issues they’ve heard relate to kids getting their hands on edible marijuana products.

Gregg said he’s concerned children will, more than ever before, have access to marijuana.

“And what essentially happens to young people is they drop out of school, at least in their minds,” Gregg said.

Gregg said he liked the idea of a borough-owned marijuana establishment. He said a borough-owned retail store would provide “direct control” over who marijuana is sold to. He said marijuana revenues could go toward youth educational programs to help curb use.

The borough assembly has the option to create more restrictive rules than state regulations, but not less restrictive.

The assembly can, for example, limit what types of marijuana products retail stores sell, such as edible marijuana candies or baked goods.

“I was hoping to hear from the two people retailing, if they would be amenable to maybe starting out without offering those items just on a trial basis,” Morphet said.

Representatives from those businesses indicated they might be open to Morphet’s suggestion to limit edibles, but no official agreement was made.

The assembly can also limit the number of permits allowed in the borough.

Letnikof Estates homeowner Tom Ganner, who objected to the cultivation facility proposed for his neighborhood, attended Monday’s meeting and said the assembly should enact local regulation.

“Local public concerns should be acknowledged, respected and addressed,” Ganner said. “I would ask the assembly to take measures to ensure the community has a voice in the permitting and licensing process.”

Erika Merklin also applied for a “limited” marijuana cultivation facility license doing business as Resurrected Dreams, defined as a cultivation space less than 500 square feet.

Her facility will be on Mosquito Lake Road. The address for the location is HC 60 Box 2618.

McNamara’s retail location will be between the post office and the Quick Shop.

Using the business name Glacier Bay Farms, Waldo’s cultivation business location is at 17 Helms Loop Spur and her retail store at 75 Beach Road.