A multi-state cannabis company headquartered in Michigan plans to build a 72,366-square-foot cultivation site in East Hartford.
Launched about six years ago, C3 Industries currently employs about 800 people with 20 retail locations and 250,000 square feet of marijuana growing and production space in Michigan, Massachusetts, Missouri and Oregon.
C3 is in the process of expanding to three new states, according to CEO Ankur Rungta. That includes the proposed facility along Park Road in East Hartford. A request for a special permit is scheduled to go before the Planning and Zoning Commission on Wednesday.
Rungta said C3 has a purchase agreement in place to buy the western half of the 120,617-square-foot industrial building at 241 Park Ave., and a roughly 15,000-square-foot portion of the industrial complex at 217-221 Park Ave.
Both properties are currently owned by by Daniel Rosow, of South Windsor and David Levitz, of Avon.
Mayor Michael Walsh said he met with C3 representatives in recent weeks and believes they have a well-organized plan that comes with millions of dollars in investment. While he’s skeptical about some of the touted benefits of marijuana, this proposal has his support.
“I don’t think marijuana is the panacea some people do,” Walsh said. “However, it is legal and I’m going to welcome them with open arms.”
Between property, equipment and renovation costs, Rungta said the East Hartford project is a roughly $12 million investment. He said the venture could begin operations as soon as the second quarter of 2024, with plans to eventually employ about 70 people. Rungta seeks to finance property costs, at least partially, through a sale-leaseback deal with a real estate investment trust. The balance of the expenses will come from equity, he said.
The buildings included in the proposal will see substantial renovations, according to C3’s application, including an odor control system, a new HVAC system and extensive security precautions.
C3 is asking town officials to allow it to satisfy parking requirements through the lease of at least 23 spaces inside an industrial building at 191A Park Ave.
Rungta said his company worked to incorporate every suggestion brought up in a recent meeting with East Hartford fire and police officials. The company has a strong relationship with Rosow and Levitz and could buy more of the neighboring properties for expansion in the future, he said. The proposal will bring a new industry and new jobs to East Hartford, and spur investment by an experienced company, Rungta noted.
“This is our seventh production facility we are building, so we have a lot of experience with this,” Rungta said.
In late 2022, a limited liability company tied to C3 was awarded a “Section 149” cultivator license, which allows large-scale cultivation sites to locate in areas disproportionately affected by the federal “war on drugs.” The allowable zones under Section 149 are clustered in lower income and urban areas, including East Hartford.
The state permit allows awardees to participate in up to two “equity joint ventures.” These must be at least half-owned by an individual with an income of less than three times the median state household income who either is, or recently was, a resident of an area disproportionately impacted by the “war on drugs.”
Rungta said his company is exploring possible cannabis retail sites through equity joint ventures.
