Cannabis business aims to buy Blackduck's Anderson Fabrics buildings

BLACKDUCK — The Blackduck City Council is in the process of amending its cannabis ordinance as a marijuana cultivator and retailer has expressed interest in setting up shop.

Anderson Fabrics had been a major employer for the small community of Blackduck for decades. The New York-based Shade Store acquired the company in 2021 but announced earlier this year it was laying off over 100 employees across three buildings in Blackduck.

Mike Sahlman of West Face Partners and Alan Bonsett with NoBo presented to the Blackduck City Council on Aug. 18, about their interest in purchasing the Shade Store properties. They said their proposal would provide around 150 jobs, cultivating marijuana indoors over 45,000 square feet.

Bonsett pointed to his cannabis company’s success in some parts of Michigan, which similarly saw major changes in local manufacturing over the years.

"We took an old foundry that was off the tax roll ... for about eight years, and we bought that and then built it into a state-of-the-art cannabis facility, which now employs about 50 people and is still vibrant and successful to this day,” Bonsett said.

During the meeting, City Administrator Christina Regas said the city’s cannabis ordinance, adopted earlier this year, provides buffers to prevent marijuana businesses from opening too close to schools or day cares.

One early childhood center is within a 500-foot buffer of Anderson Fabrics.

"Even though it's in an industrial zone, it was created to support Anderson Fabrics ... so that their employees had day care for their kids, but unfortunately, it had to grow and separate as well," Regas said. “So it remains kind of in an island on that side of town.”

Amending an ordinance takes three readings, with the first slated for Monday, Sept. 22. Blackduck will host public hearings with each reading, with Monday’s set to begin before the regular meeting at 6 p.m.

Bonsett said with Blackduck’s cooperation, they could begin renovating the old Shade Store properties as early as January.

While no formal action has yet been taken, council members expressed support for the new industry during the last two council meetings. Beltrami County is the licensing authority for any cannabis business in Blackduck.

Editor's Note: This story was updated to refer to the day care as an early childhood center, as it includes a Head Start education program.

KAXE regrets the error.