Under terms of the contract, Union Twist will pay the city a community impact fee of 3 percent of its future gross sales. The money is meant to offset the costs the city incurs for hosting the business.
FRAMINGHAM — The first retail marijuana dispensary approved in Framingham will pay the city $50,000 upfront and 3 percent of its future sales revenue under an agreement signed by Mayor Yvonne Spicer last week.
Union Twist, which plans to operate at 630 Worcester Road (Rte. 9), executed a host community agreement with Spicer on May 3.
While it still needs approval from the Cannabis Control Commission, the dispensary cleared a key hurdle in the state’s licensing process by reaching a deal with the city, which is evaluating applications from a range of prospective marijuana establishments.
Union Twist plans to sell both medical and recreational cannabis products, though its initial agreement with the city covers only the non-medical side of its operations.
Under terms of the contract, the dispensary will pay the city a community impact fee of 3 percent of its future gross sales. The money is meant to offset the costs the city incurs for hosting the business.
In paperwork submitted to the city, Union Twist projected it will serve a little more than 267,000 customers during its first year in business, generating more than $40 million in revenue, about $1.2 million of which would be transferred to the city in the form of a 3 percent local impact fee.
The agreement outlines some intended uses for Framingham’s cut of the pot revenue, including paying for higher public safety costs, establishing addiction treatment programs and other public health and education initiatives, fixing roads and promoting a “positive perception” of the city.
Union Twist retained the right to renegotiate the fee in