As the state of Pennsylvania reviews hundreds of permit applications for the growing and dispensing of medical marijuana, Butler-based Cresco Yeltrah, a medical cannabis company established by the Hartley family, is proceeding with preliminary construction of a proposed growing facility.

The site work for the 28,500-square-foot building is on a 6-acre parcel in Pullman Center Business Park on Hollywood Drive.

Kent Hartley, chief operating officer of Standard Bent Glass in Butler, and his brother, Trent, confirmed for the Butler Eagle last week that Cresco Yeltrah has applied to the state for medical marijuana growing and dispensing permits. If obtained, the Hartley family, Cresco Labs in Chicago and Denver Relief Consulting in Denver will be operating partners in the business.

Cresco Labs is a multistate medical cannabis operating company with three cultivation and processing facilities in Illinois; a fourth facility is under construction in Puerto Rico.

Denver Relief Consulting had the longest-operating regulated cannabis business in the state of Colorado before it was sold about six months ago. Denver Relief now is a consulting group, which has assisted clients in getting licenses in more than a dozen states, as well as Washington, D.C., Puerto Rico and Canada.

The state is expected to release information on which applicants were awarded permits in mid-June.

Plan to revitalize area

Kent Hartley said they chose the Pullman Center to bring the business into Butler and revitalize the area.

“We decided to do the project in the city of Butler because (the building has) been vacant since 1982. It's an eyesore and has been for some time. The chances of it being revitalized are slim to none. We thought it was a great opportunity and a good time to do it,” he said. “We're proceeding with the construction in anticipation of getting the license. If something would happen where we don't get a license, at that point we'll have a building constructed for phase two.”

Cresco Yeltrah also applied to the state for licenses for dispensaries that would be located in the city of Butler, the Strip District of Pittsburgh and New Stanton in Westmoreland County.

The proposal for cultivation, manufacturing and retail facilities is estimated at $3 million.

If they get state permits, 40 full-time jobs could be created during phase one of the medical marijuana program, while an additional 30 jobs could be created during phase two, he said.

The proposal also includes a community reinvestment plan in which Cresco Yeltrah would donate a portion of net profits to local charities and initiatives for the benefit of the Butler community.

Children are helped

Trent Hartley, who currently resides in Conway, S.C., is the co-founder of Palmetto Synergistic Research, in Conway. The company develops products called Palmetto Harmony, an organic whole-plant oil made from the Cannabis sativa plant.

The family initially became invested in the business as a result of Trent's three children with autoimmune disease symptoms which have been eased with the use of cannabidiol, which is a non-psychoactive component of cannabis.

Strong local support

The Hartleys said they've had tremendous support from county and city officials who feel the business will be an asset to the area.

Butler Mayor Tom Donaldson said he supported the Hartleys' proposal for a medical marijuana business because of the benefits it will bring to the area.

“There are a lot of people who may or may not be in favor of this. I looked at it strictly from the fact that they're investing in a business in the city and it's going to be well regulated. It could be a great benefit to the city in regards to taxes,” Donaldson said.

“Being a former police officer, I probably would have been the first guy against it. But since the state has legalized it and licensed it, I have to look at what's best for my city in regards to business, development and taxes.”

Donaldson added that because the Hartley family already has a reputation for giving back to the community through its Butler business, he was willing to support the proposal.

“They're businessmen. They're honest men. They're people from our community. They came to their community first. They could have gone other places,” he said. “The way they do their business model is that they return their investment back into the community.”

Commissioner Kevin Boozel also said he supports having a medical marijuana business within the county.

“This is an economic growth decision. I think placing it here in Butler County for the job industry would be a positive,” he said.

Boozel said public concerns about the medical marijuana industry coming to the county should be addressed with education about the state's new program.

“I was concerned at first, but I made sure I went out and educated myself before making a decision about whether I agree or disagree with it. I would encourage others to do the same,” he said.

Before the deadline for state permits in late March, Cresco Yeltrah partnered with Kayvan Khalatbari, co-founder of Cresco Labs and Denver Relief Consulting. Khalatbari has worked with clients and government officials across the country on developing medical marijuana programs and businesses.

Khalatbari said he sees a changing attitude toward the industry as more people become educated on the benefits of medical marijuana.

“When we can educate people about the types of people that are getting involved in this industry, the way we're going to operate, the types of products, and our approach to this being based on medicine and community impact, people change their minds pretty quickly,” Khalatbari said. “A lot of fear is based on not knowing what's going to happen.”

The Pennsylvania Department of Health began implementing the state's medical marijuana program when Gov. Tom Wolf signed Senate Bill 3 into law in April 2016.

The program is expected to be implemented by the beginning of 2018. Once the program is started, patients who are residents of the state and are in the care of a state-licensed physician for the treatment of one of 17 serious medical conditions may lawfully obtain medical marijuana within the commonwealth.

The medical conditions that are permitted to be treated with medical marijuana are: amyotrophic lateral sclerosis, autism, cancer, Crohn's disease, damage to the nervous tissue of the spinal cord, epilepsy, glaucoma, HIV and AIDS, Huntington's disease, inflammatory bowel disease, intractable seizures, multiple sclerosis, neuropathies, Parkinson's disease, post-traumatic stress disorder, sickle cell anemia, and severe chronic or intractable pain of neuropathic origin in which conventional therapeutic intervention and opiate therapy is ineffective.

Under Act 16 of 2016, medical marijuana will be available only in the forms of pills, oil, topicals, vaporizer, nebulizer, tincture and liquid.

In February, the Department of Health began accepting applications for growers/processors and dispensaries. The application deadline was March 20.

After applications are considered, the Department of Health will issue up to 12 grower/processor permits and up to 27 dispensary permits.

State has 6 regions

Pennsylvania is divided into six medical marijuana regions. Two grower/processor permits will be issued in each region.

Butler County is in Region 5 and is included within the 11-county southwest region. Five dispensary permits will be issued in Region 5.

The initial application fee for a grower/processor permit was $10,000 and permit fees were $200,000. Permit fees will be refunded if an applicant is not issued a permit.

The initial application fee for a dispensary permit was $5,000, while the permit fee was $30,000 per dispensary location.

In addition to applications and fees, an applicant had to consent to an investigation to determine the applicant's ability to meet the requirements of the act, as well as a criminal history background check.