The Detroit Free Press reports that in last night’s State of the City address, Detroit Mayor Mike Duggan discussed plans to ensure that at least 50% of new recreational sales licenses end up in the hands of residents of the city of Detroit:

Of the 40 medical marijuana dispensaries operating legally in the city now, only four are owned by Detroiters, he said, adding, “it is not benefiting the people who live here.”

Under the city’s proposal, Detroit has settled on awarding 75 recreational marijuana retail store permits in the city and 50% of those permits would be set aside for shops where Detroiters own at least 51% of the business.

The proposal worries some of those dispensary owners who fear they’ll be shut out of the recreational market in Detroit.

“It most certainly raises a red flag,” said Stuart Carter, an Oakland County resident who opened Utopia Gardens dispensary in Detroit in November, 2017. “I’ve committed literally $2 million of my personal funds to build this marijuana business in Detroit and I have 22 employees and 19 are Detroit residents. And to find out now that I could be excluded is concerning.”

Duggan acknowledged some residents’ fears about being pushed out amid the city’s resurgence. He said that the city is studying ways to avoid the pitfalls of gentrification in cities like San Francisco, Brooklyn and Austin, Texas.

“What are we going to do to make sure that does not happen here?” Duggan asked the invitation-only crowd of about 500.Of the 40 medical marijuana dispensaries operating legally in the city now, only four are owned by Detroiters, he said, adding, “it is not benefiting the people who live here.”

Under the city’s proposal, Detroit has settled on awarding 75 recreational marijuana retail store permits in the city and 50% of those permits would be set aside for shops where Detroiters own at least 51% of the business.

The proposal worries some of those dispensary owners who fear they’ll be shut out of the recreational market in Detroit.

“It most certainly raises a red flag,” said Stuart Carter, an Oakland County resident who opened Utopia Gardens dispensary in Detroit in November, 2017. “I’ve committed literally $2 million of my personal funds to build this marijuana business in Detroit and I have 22 employees and 19 are Detroit residents. And to find out now that I could be excluded is concerning.”

Duggan acknowledged some residents’ fears about being pushed out amid the city’s resurgence. He said that the city is studying ways to avoid the pitfalls of gentrification in cities like San Francisco, Brooklyn and Austin, Texas.

“What are we going to do to make sure that does not happen here?” Duggan asked the invitation-only crowd of about 500.