From VHS to THC: Empty Family Video stores are popular sites for marijuana dispensaries
A medical cannabis dispensary may be coming to a vacant Family Video near you.
A dozen Ohio properties once occupied by the Blockbuster rival are candidates for dispensaries that will be selected through a lottery on Thursday. Nearly 1,500 applications were submitted for 73 new licenses under the state's medical marijuana program.
The 12 Family Video stores attracted 192 applications altogether, including 43 for a location in Dayton. Parent company Highland Ventures Ltd. announced the closure of its remaining video stores last year, but CEO Keith Hoogland said the company's Legacy Commercial Property division would continue to operate.
Medical marijuana: Ohio plans to more than double number of medical marijuana dispensaries
Dispensary applicants also sought out empty Family Video storefronts in Coshocton, Springfield, Delphos, Youngstown and Columbus, among other locations. A Zanesville property managed by the same company received 18 applications, although it previously housed a different business.
Representatives from Legacy Commercial Property did not respond to multiple interview requests.
Marijuana dispensaries could provide income from shut video rental sites
Klutch Cannabis CEO Adam Thomarios said they reached out to Legacy Commercial Property early in the application process to discuss potential real estate. Some locations are exclusive to Klutch, Thomarios said, but property managers began giving multiple applicants access to the same Family Video stores.
Thomarios said the company charged Klutch to hold the locations but declined to say how much.
"I think after a certain period of time, they realized they could capitalize on the situation," he said.
Demand for cannabis retail in Ohio
The Family Video applications are just a sample of the 1,456 submitted for Thursday's drawing, and the state received $5,000 from each one. The addition of 73 licenses will increase the total statewide to 130 after years of patient complaints about high prices and long drives to find products.
"We really, really do believe that the market is kind of stifled for retail right now," Pete Nischt of Klutch Cannabis said.
The Ohio Board of Pharmacy, which regulates dispensaries, chose to award the licenses via lottery, with a certain number allocated for each dispensary district containing a county or group of counties. Officials hope the new process will curb lawsuits from unsuccessful applicants who disputed the previous, merit-based system. The board has spent over $231,000 on legal services since the program's onset.
The board also argued a drawing will level the playing field and ensure small and minority-owned business can compete against big players. Black lawmakers and business owners say this alone won't encourage equity in the industry and called on state officials last year to require licensees to commit to diverse hiring practices or spend a certain amount on minority vendors.
After the drawing, the board will determine whether the applicants are eligible for licenses and award them from there. The winners will be announced next week.
"They’re all long shots," said Brian Wingfield, whose company put in 19 applications. "I would not be surprised if we get zero, and I wouldn’t be surprised if we end up with a couple."
Haley BeMiller is a reporter for the USA TODAY Network Ohio Bureau, which serves the Columbus Dispatch, Cincinnati Enquirer, Akron Beacon Journal and 18 other affiliated news organizations across Ohio.
Get more political analysis by listening to the Ohio Politics Explained podcast
This article originally appeared on The Columbus Dispatch: Ohio medical marijuana: Board of Pharmacy to hold dispensary drawing
